The Biden administration announced on Friday that it will be allocating $1.6 billion towards supporting Texas Instruments’ initiatives to enhance the production of “mature node” semiconductors in the United States. These semiconductors play a crucial role in various everyday applications.
The Department of Commerce and the Dallas-based tech manufacturer have collaborated on a project funded by the CHIPS and Science Act. The funding will support the construction of three new semiconductor “fabs.” Two of these fabs are already in progress in Sherman, Texas, while the third one is being built in Lehi, Utah.
Secretary of Commerce Gina Raimondo and Texas Instruments CEO Haviv Ilan have announced plans for new plants that will address the persistent shortage of 300mm wafer chips. These chips, known as “mature node” technology, may not be cutting edge but are still crucial for a wide range of applications across various sectors of the American economy.
The CHIPS Act, signed into law by President Joe Biden in 2022, aims to incentivize companies to enhance domestic manufacturing of semiconductor chips. These chips are crucial for U.S.-based supply chains, as well as for economic and national security.
Raimondo mentioned in a statement that the shortage of current-generation and mature node chips during the pandemic not only caused inflation but also posed a threat to our country’s safety. To address this issue, the Biden-Harris administration is proposing an investment in TI, a prominent producer of these chips. By securing the supply chain for these crucial semiconductors that are utilized across various sectors of the U.S. economy, this investment would not only create thousands of jobs in Texas and Utah but also contribute to bolstering our nation’s economy.
Mature node semiconductors may not receive the same level of attention as their advanced counterparts, but they still play a crucial role in various industries worldwide. These industries include telecommunications equipment, computing, automotive, memory and storage, and cloud equipment.
The automotive industry felt the impact of the COVID-19 pandemic as there was a shortage of chips in the U.S. This shortage led to temporary closures of auto manufacturing plants, as they did not have enough chips to produce vehicles.
According to Ilan, TI has set its sights on a significant expansion of its 300mm manufacturing operations in the United States. By 2030, they plan to increase their operations by more than 95%. The aim is to establish a robust and reliable domestic capacity that can cater to the country’s needs for the long term.