Texas Instruments (TI) stands to receive up to $1.6 billion in funding from the US Department of Commerce for three semiconductor facilities, as part of a move to boost the domestic semiconductor industry.

The proposed direct funding from the CHIPS and Science Act will be used to help build TI’s 300mm wafer fabs already under construction in the states of Texas and Utah.

TI plans to invest more than $18 billion in the years before the end of the decade on the projects. The chipmaker noted the builds will create 2,000 company roles, along with thousands of indirect jobs for construction, suppliers and supporting industries.

In addition, the chipmaker stated it expects to receive an estimated $6 billion to $8 billion in investment tax credit from the US Department of the Treasury and an additional $10 million in funding for workforce development.

“With plans to grow our internal manufacturing to more than 95 per cent by 2030, we’re building geopolitically dependable, 300mm capacity at scale to provide the analog and embedded processing chips our customers will need for years to come,” CEO Haviv Ilan stated.

US Secretary of Commerce Gina Raimondo stated TI is expected to be an important part of President Joe Biden administration’s “work to revitalise semiconductor manufacturing and development in the US”.