Why Is Texas Instruments Stock Rising Today?

Texas Instruments Incorporated TXN shares are trading higher on Friday.

The company is set to receive up to $1.6 billion in direct funding from the U.S. Department of Commerce through the CHIPS and Science Act.

This investment will support the construction of three 300mm semiconductor wafer fabs in Texas and Utah.

Texas Instruments anticipates receiving between $6 billion and $8 billion from the U.S. Department of Treasury’s Investment Tax Credit, aimed at supporting qualified U.S. manufacturing investments.

The company also anticipates receiving $10 million in proposed funding for workforce development.

The proposed direct funding would support Texas Instruments’ investment of over $18 billion through 2029, contributing to the company’s broader manufacturing expansion.

Also Read: Biden To Present Intel With CHIPS Act Award, Cementing Arizona As Semiconductor Hotspot: Report

This funding will specifically aid in the development of three new wafer fabs: two in Sherman, Texas (SM1 and SM2), and one in Lehi, Utah (LFAB2). The funding will be used to:

• Construct and build the cleanroom for SM1 and complete the pilot line for initial production.
• Construct and build the cleanroom for LFAB2 to commence initial production.
• Build the shell for SM2.

This initiative is expected to generate over 2,000 new direct jobs at Texas Instruments, along with thousands of additional indirect jobs in construction, supply chains, and supporting industries.

“Our investments further strengthen our competitive advantage in manufacturing and technology as we expand our 300mm manufacturing operations in the U.S.,” said Haviv Ilan, president and CEO of Texas Instruments.

“With plans to grow our internal manufacturing to more than 95% by 2030, we’re building geopolitically dependable,” Ilan added.

The U.S. is advancing domestic semiconductor production through the CHIPS Act, enacted in 2022.

This legislation offers up to $52.7 billion in funding, which includes $39 billion in subsidies for semiconductor manufacturing and $11 billion for research and development, reported Reuters.

“With this proposed investment from the Biden-Harris Administration in TI, a global leader of production for current-generation and mature-node chips, we would help secure the supply chain for these foundational semiconductors that are used in every sector of the U.S. economy,” said U.S. Secretary of Commerce Gina Raimondo. 

Price Action: TXN shares are trading higher by 1.27% to $204.50 premarket at last check Friday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo via Shutterstock

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