On August 16, 2024, the Biden administration revealed a significant investment of $1.6 billion aimed at bolstering semiconductor manufacturing through Texas Instruments. This funding will be allocated to advanced chip fabrication plants in Utah and Texas, supported by the CHIPS and Science Act, a cornerstone of President Biden’s economic strategy initiated in 2022.
The initiative will facilitate the establishment of three semiconductor manufacturing sites, including a new facility in Lehi, Utah, where Texas Instruments plans to invest an additional $11 billion. U.S. officials estimate that this investment will catalyze an additional $18 billion in private capital by the end of the decade, with Texas Instruments creating over 2,000 manufacturing jobs and thousands more in related sectors.
Arati Prabhakar, assistant to the president for science and technology, highlighted this funding as a historic economic boost for Utah, with the state poised to ramp up domestic semiconductor production—an essential component in a wide range of electronic devices. “These chips are the fundamental building blocks of nearly all electronic devices,” Prabhakar remarked during a media briefing, emphasizing the importance of producing these chips domestically.
The approval comes as part of a broader strategy by the U.S. government to regain competitiveness in global chip production, which has become critical given recent supply chain disruptions exacerbated by the COVID-19 pandemic. As a result, the U.S. is projected to produce up to 28% of the world’s advanced logic chips by 2032, largely due to the CHIPS and Science Act investments.
Utah Governor Spencer Cox expressed enthusiasm for the expansion of Texas Instruments in the Silicon Slopes, underscoring the dual benefits of job creation and a more resilient supply chain for semiconductor technology. “This is about national security. It’s about supply chains and bringing supply chains back to the United States,” he added during the groundbreaking ceremony for the new manufacturing facility.
Senator Mitt Romney, a key supporter of the CHIPS and Science Act, reaffirmed the legislation’s significance, stating that enhancing U.S. chip manufacturing is essential for national defense and economic prosperity. Advanced semiconductors play a pivotal role in various consumer products, highlighting the urgency for domestic production amid ongoing shortages.
Texas Instruments is expected to commence production at its new site in Lehi by 2026, with plans already underway after breaking ground in November 2023. The commitment to semiconductor manufacturing not only aims to alleviate supply chain vulnerabilities but also aims to ensure a stable supply of chips vital for the economy’s future.
In conclusion, this investment marks a robust commitment from the U.S. government to rejuvenate the semiconductor industry domestically and secure its technological sovereignty. The success of these initiatives will not only create thousands of jobs but also set the stage for a more resilient and innovative technological landscape in the years to come.
