Texas Instruments yesterday announced plans to invest $11 billion in Utah, the single largest economic investment in the state's history. The company plans to build a new semiconductor factory that will create 800 new high-tech jobs.
The 300-millimeter semiconductor wafer fabrication plant in Lehi, Utah, will be built next to the company's existing fab. Once completed, the two fabs will operate as a single entity.
The announcement came from Utah Gov. Spencer Cox's Office of Economic Opportunity, which awarded TI a post-performance tax reduction. The incentive is part of the state's Economic Development Tax Increment Financing (EDTIF) program.
Texas Instruments designs and manufactures semiconductors sold to companies all over the world. Based in Dallas, TX, the company operates in more than 30 countries and has some 33,000 global employees.
Haviv Ilan, TI executive vice president and COO, and incoming president and CEO, said there is no better time to further invest in internal manufacturing capacity given the anticipated growth of semiconductors in electronics, particularly in industrial and automotive, as well as the passage of the CHIPS and Science Act. The act provides some $280 billion in new funding to boost domestic semiconductor research and manufacturing.
As part of the state incentive package, TI could receive up to 30% of the additional state taxes it will pay over the 20-year life of the agreement. For every year TI meets the criteria in its contract with the state, it will qualify for a portion of the total tax credit.
Construction is scheduled to begin this year, with production starting as early as 2026. TI also has 300-mm fabs in Dallas and Richardson, Texas. The company also plans to build four new 300-mm wafer fabs in Sherman, Texas, as part of an additional $30 billion investment.
On the philanthropy side of the deal, TI also committed $9 million to the Alpine School District in Utah to improve student opportunities and outcomes.