US to provide up to $1.6B in funding for Texas Instruments for chip production

​​​​​​​By Ovunc Kutlu

ISTANBUL (AA) - The US administration signed an agreement with Texas Instruments to provide up to $1.6 billion in direct funding for chip production, the Commerce Department said Friday.

The deal, part of President Joe Biden's CHIPS and Science Act, aims to strengthen the resilience of the domestic supply chain in the US, advance its national security and bolster the US' competitiveness in semiconductor production, it said in a statement.

The proposed funding would support Texas Instruments' investment of more than $18 billion through the end of the decade to construct three state-of-the-art facilities, including two in the state of Texas and one in Utah, it added.

The investment is estimated to create more than 2,000 manufacturing jobs and thousands of construction jobs, it noted.

"During the pandemic, shortages of current-generation and mature-node chips fueled inflation and made our country less safe," said Commerce Secretary Gina Raimondo, adding that the deal would help secure the supply chain of foundational semiconductors that are used in every sector of the American economy.

Texas Instruments is one of the top multinational semiconductor manufacturing companies in the world based on sales volume.