The CHIPS and Science Act was approved about two years ago to support US semiconductor production and innovation. It provides funds to encourage private investment and has already led to about $450 billion (and rising) in new projects.
Texas Instruments was a recent beneficiary, with up to $1.6 billion in direct funding to support three 300mm semiconductor wafer fabs under construction in Texas (near Sherman) and Utah and another $6 billion to $8 billion in Investment Tax Credits as a qualified US manufacturing investment. Samsung’s Taylor, Texas production facility has received $6.4 billion. It is important to note that the TI and Samsung investments in these facilities are multiples of the federal influx, and that the new facilities will create thousands of jobs. More importantly, they will help to secure future US economic growth, security, and, indeed, sustainability.
The essential purpose of the CHIPS Act is to develop a geopolitically dependable supply of semiconductors. These chips are critical to a variety of industries including the automotive, data storage and wireless applications, consumer electronics, industrial, smartphone, wired communications, server, and PC sectors (in other words, just about everything). In addition, advanced chips are needed for AI technologies. They are also essential to national defense.
