Texas Instruments, a chip manufacturer, is set to receive up to $1.6 billion in funding from the US government. The funding will support the construction of three new chip facilities in Texas and Utah, as part of the CHIPS Act.
The aim is to increase the US's independence from China in semiconductor production, reduce the effects of chip shortages on inflation and national security, and create over 2,000 new jobs. The funding is part of a broader $18 billion investment by Texas Instruments over the next ten years.
Currently, over 90% of global chip production occurs in East Asia, primarily in Taiwan, South Korea, Japan, and China. This funding is part of the US government's efforts to bolster domestic semiconductor manufacturing and research, with other companies like Intel, SK hynix, Samsung, TSMC, and Micron also receiving funds under the act.
Meanwhile, China has increased state support for its chip industry, but the US and its allies are expected to secure a dominant position in the semiconductor industry. Indonesia is also making efforts to become a semiconductor hub, leveraging its raw material advantages and aiming to attract foreign investment and collaborate with global stakeholders.
