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Texas Instruments and the U.S. Department of Commerce announced an award agreement of up to $1.6 billion in direct funding through the U.S. CHIPS and Science Act, following the preliminary memorandum of terms announced in August 2024.
The funding will help support three of TI’s new 300mm wafer fabs currently under construction in Texas and Utah. Support from the CHIPS Act, including the 25% investment tax credit, will help TI provide a geopolitically dependable supply of essential analog and embedded processing semiconductors.
“As the largest analog and embedded processing semiconductor manufacturer in the U.S., TI is uniquely positioned to provide dependable, low-cost 300mm semiconductor manufacturing capacity at scale,” said Haviv Ilan, president and CEO of Texas Instruments. “The increasing number of electronic devices in our lives depend on our foundational chips, and we appreciate the support from the U.S. government to make the semiconductor ecosystem stronger and more resilient.”
The CHIPS Act direct funding will support TI’s investments through 2029 for three large-scale 300mm wafer fabs in Sherman, Texas (SM1 and SM2), and Lehi, Utah (LFAB2). Together, these fabs will manufacture tens of millions of analog and embedded processing chips every day that are critical to a variety of end markets, including automotive, industrial, personal electronics, communications equipment and enterprise systems.
Specifically, the CHIPS Act direct funding will be distributed upon completion of project milestones, supporting:
- Cleanroom construction and tool installations at SM1 in Sherman, Texas;
- Shell construction of SM2, a second fab in Sherman, Texas; and
- Cleanroom construction and tool installations at LFAB2, a second fab in Lehi, Utah.
These connected, multi-fab sites in Texas and Utah will benefit from shared infrastructure, talent and technology sharing, and a strong network of existing suppliers and community partners.
Combined, TI’s three new fabs in Texas and Utah will create 2,000 company jobs, along with thousands of indirect jobs for construction, suppliers and supporting industries. TI is also investing in building its future workforce. As part of the CHIPS Act award agreement, TI will also receive up to $10 million for workplace development efforts in Texas and Utah.
Consistent with TI’s longstanding commitment to responsible, sustainable manufacturing and environmental stewardship, the company’s 300mm wafer fabs will be entirely powered by renewable electricity. Additionally, TI is committed to reducing overall water consumption across its operations, endeavoring to achieve a 70% water reuse capability in Sherman, Texas, and Lehi, Utah. All of TI’s new 300mm fabs are also designed to meet LEED Gold standards for structural efficiency and sustainability.
Original – Texas Instruments
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Texas Instruments (TI) announced the opening of its new, state-of-the-art product distribution center in Dreieich, Germany, outside of Frankfurt. This new distribution center includes 9,000 square meters of space and new automation features. The new center has the capacity to quickly ship up to 7,500 orders per day of a broad range of TI analog and embedded processing semiconductors across Europe.
“Our new product distribution center offers faster, more efficient, flexible and reliable service for TI’s customers in Europe to meet semiconductor demand now and in the future,” said Stefan Bruder, president of Texas Instruments Europe. “Our new center in Dreieich is the latest addition to TI’s global product distribution network which, combined with our convenient purchasing options, provides an improved customer experience from product selection to shipment.”
Located near many of TI’s industrial and automotive customers, as well as the Frankfurt Airport, the new distribution center enables faster product delivery in Europe. The pick, pack and ship process is fully automated and orders are ready to ship within 15 minutes or less. Customers in central Germany can expect same-day product delivery, while next-day delivery is available to customers in most European countries.
TI has been operating in Europe since 1956, and its new distribution center builds on TI’s existing European footprint which includes a semiconductor wafer factory in Freising, Germany, research and development teams, as well as more than 30 sales offices across 18 different European countries.
Customers in Europe and across the globe can conveniently buy from TI and save on exchange fees with more than 20 currency options available (including euro, pound sterling, Norwegian kroner and Swiss franc) when purchasing on TI.com or through TI API suites.
Original – Texas Instruments
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Texas Instruments (TI) announced that the Science Based Targets initiative (SBTi) has received the company’s commitment to set near-term company-wide emissions reductions in line with climate science.
As part of its commitment, TI is developing science-based targets for review and validation by SBTi’s technical experts, including greenhouse gas (GHG) emissions reduction targets for Scope 1 and 2 emissions aligned with the Paris Agreement which sets the goal of limiting global warming to 1.5°C. In addition, TI plans to begin reporting additional relevant Scope 3 GHG emission categories in 2025 and plans to set supplier engagement targets to reduce emissions across its value chain.
“Our semiconductors are the foundation of sustainable technology solutions, from renewable energy and storage to vehicle electrification,” said Haviv Ilan, TI president and chief executive officer. “As a manufacturer of tens of billions of semiconductors each year, it’s critical that we provide dependable capacity while continuously striving to reduce our environmental impact. Setting and achieving climate goals underscores TI’s long-standing commitment to operate in a socially thoughtful and environmentally responsible manner, and we are confident that our collective efforts will be impactful and long-lasting.”
As TI works with SBTi to develop and assess its future goals, the company remains focused on its current multiyear goals that continue through 2025, including a reduction in absolute Scope 1 and Scope 2 emissions by 25% from a 2015 base year.
As the company continues to expand its manufacturing and provide geopolitically dependable capacity, TI will further increase its use of renewable electricity, with key milestones to reach 100% in its 300mm manufacturing operations by 2025, 100% in its U.S. operations by 2027, and 100% in its worldwide operations by 2030.
Original – Texas Instruments
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Texas Instruments (TI) announced it has begun production of gallium nitride (GaN)-based power semiconductors at its factory in Aizu, Japan. Coupled with its existing GaN manufacturing in Dallas, Texas, TI will now internally manufacture four times more GaN-based power semiconductors, as Aizu ramps to production.
“Building on more than a decade of expertise in GaN chip design and manufacturing, we have successfully qualified our 200mm GaN technology – the most scalable and cost-competitive way to manufacture GaN today – to start mass production in Aizu,” said Mohammad Yunus, TI’s senior vice president of Technology and Manufacturing. “This milestone enables us to manufacture more of our GaN chips internally as we grow our internal manufacturing to more than 95% by 2030, while also sourcing from multiple TI locations, ensuring a reliable supply of our entire GaN portfolio of high-power, energy-efficient semiconductors.”
An alternative to silicon, GaN is a semiconductor material that offers benefits in energy-efficiency, switching speed, power solution size and weight, overall system cost, and performance under high temperatures and high-voltage conditions. GaN chips provide more power density, or power in smaller spaces, enabling applications such as power adapters for laptops and mobile phones, or smaller, more energy-efficient motors for heating and air conditioning systems and home appliances.
Today, TI offers the widest portfolio of integrated GaN-based power semiconductors, ranging from low- to high-voltage, to enable the most energy-efficient, reliable and power-dense electronics.
“With GaN, TI can deliver more power, more efficiently in a compact space, which is the primary market need driving innovation for many of our customers,” said Kannan Soundarapandian, vice president of High-Voltage Power at TI. “As designers of systems such as server power, solar energy generation and AC/DC adapters face challenges to reduce power consumption and enhance energy efficiency, they are increasingly demanding a reliable supply of TI’s high-performance GaN-based chips. TI’s product portfolio of integrated GaN power stages enables customers to achieve higher power density, improved ease of use and lower system cost.”
Further, with the company’s proprietary GaN-on-silicon process, more than 80 million hours of reliability testing, and integrated protection features, TI GaN chips are designed to keep high-voltage systems safe.
Using the most advanced equipment available for GaN chip manufacturing today, TI’s new capacity enables increased product performance and manufacturing process efficiency, as well as a cost advantage. Also, the more advanced, efficient tools used in TI’s expanded GaN manufacturing can produce smaller chips, packing even more power. This design innovation can be manufactured using less water, energy and raw materials, and end products that use GaN chips enjoy these same environmental benefits.
The performance benefits of TI’s added GaN manufacturing also enable the company to scale its GaN chips to higher voltages, starting with 900V and increasing to higher voltages over time, furthering power-efficiency and size innovations for applications like robotics, renewable energy and server power supplies.
In addition, TI’s expanded investment includes a successful pilot earlier this year for development of GaN manufacturing processes on 300mm wafers. Further, TI’s expanded GaN manufacturing processes are fully transferable to 300mm technology, positioning the company to readily scale to customer needs and move to 300mm in the future.
Expanding supply and innovation in GaN technology is the latest example of TI’s commitment to responsible, sustainable manufacturing. TI has committed to use 100% renewable electricity in its U.S. operations by 2027, and worldwide by 2030.
Original – Texas Instruments
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Texas Instruments Incorporated reported third quarter revenue of $4.15 billion, net income of $1.36 billion and earnings per share of $1.47. Earnings per share included a 3-cent benefit for items that were not in the company’s original guidance.
Regarding the company’s performance and returns to shareholders, Haviv Ilan, TI’s president and CEO, made the following comments:
- “Revenue decreased 8% from the same quarter a year ago and increased 9% sequentially. Industrial continued to decline sequentially, while all other end markets grew.
- “Our cash flow from operations of $6.2 billion for the trailing 12 months again underscored the strength of our business model, the quality of our product portfolio and the benefit of 300mm production. Free cash flow for the same period was $1.5 billion.
- “Over the past 12 months we invested $3.7 billion in R&D and SG&A, invested $4.8 billion in capital expenditures and returned $5.2 billion to owners.
- “TI’s fourth quarter outlook is for revenue in the range of $3.70 billion to $4.00 billion and earnings per share between $1.07 and $1.29. We continue to expect our fourth quarter effective tax rate to be about 13%.”
Original – Texas Instruments
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Texas Instruments (TI) and the U.S. Department of Commerce have signed a non-binding Preliminary Memorandum of Terms for up to $1.6 billion in proposed direct funding under the CHIPS and Science Act to support three 300mm wafer fabs already under construction in Texas and Utah. In addition, TI expects to receive an estimated $6 billion to $8 billion from the U.S. Department of Treasury’s Investment Tax Credit for qualified U.S. manufacturing investments. The proposed direct funding, coupled with the investment tax credit, would help TI provide a geopolitically dependable supply of essential analog and embedded processing semiconductors.
“The historic CHIPS Act is enabling more semiconductor manufacturing capacity in the U.S., making the semiconductor ecosystem stronger and more resilient,” said Haviv Ilan, president and CEO of Texas Instruments. “Our investments further strengthen our competitive advantage in manufacturing and technology as we expand our 300mm manufacturing operations in the U.S. With plans to grow our internal manufacturing to more than 95% 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.”
Since its founding more than 90 years ago, TI has been advancing technology, pioneering the transition from vacuum tubes to transistors and then to integrated circuits. Today, TI is the largest U.S. analog and embedded processing semiconductor manufacturer. TI chips are essential in nearly every type of electronic device, from cars with advanced safety and intelligence systems to life-saving medical equipment and smart appliances that make homes safer and more efficient.
The proposed direct funding under the CHIPS Act would support TI’s investment of more than $18 billion through 2029, which is part of the company’s broader investment in manufacturing. This proposed direct funding will support three new wafer fabs, two in Sherman, Texas, (SM1 and SM2) and one in Lehi, Utah (LFAB2), specifically to:
- Construct and build the SM1 cleanroom and complete pilot line for first production;
- Construct and build the LFAB2 cleanroom for first production; and
- Construct the SM2 shell.
These connected, multi-fab sites benefit from shared infrastructure, talent and technology sharing, and a strong network of suppliers and community partners. They will produce semiconductors in 28nm to 130nm technology nodes, which provide the optimal cost, performance, power, precision and voltage levels required for TI’s broad portfolio of analog and embedded processing products.
“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, and create tens of thousands of jobs in Texas and Utah,” said U.S. Secretary of Commerce Gina Raimondo. “The CHIPS for America program will supercharge American technology and innovation and make our country more secure – and TI is expected to be an important part of the success of the Biden-Harris Administration’s work to revitalize semiconductor manufacturing and development in the U.S.”
With a long history of supporting its employees to build long-term, successful careers, TI is also investing in building its future workforce. TI will create more than 2,000 company jobs across its three new fabs in Texas and Utah, along with thousands of indirect jobs for construction, suppliers and supporting industries.
“We are proud to work with Texas Instruments as they build new semiconductor fabs in Sherman and solidify Texas as the best state for semiconductors. Texas Instruments invented the microchip in Texas, and we are honored to be home to TI’s semiconductor manufacturing facilities in Dallas, Richardson and Sherman,” said Texas Gov. Greg Abbott. “With this latest project, TI is building on its more than 90-year legacy in Texas and adding thousands of good-paying jobs for Texans to manufacture critically important technology.”
“By investing in semiconductor manufacturing, we are helping secure this vulnerable supply chain, boosting our national security and global competitiveness, and creating new jobs for Texans,” said U.S. Sen. John Cornyn. “The chipmaking capabilities these resources will enable at Texas Instruments will help the U.S. reclaim its leadership role in the critically important semiconductor industry, and I look forward to seeing more Texas-led advancements in the years to come.”
In order to build a future-ready workforce, TI is enhancing the skills of current employees, expanding internships and creating pipeline programs with a focus on building electronic and mechanical skills. TI has robust engagements with 40 community colleges, high schools and military institutions across the U.S. to develop future semiconductor talent.
“Utah is thrilled that Texas Instruments is expanding its manufacturing presence in the Silicon Slopes, furthering the impact Utahns have on critical semiconductor technology,” said Utah Gov. Spencer Cox. “This investment in semiconductor manufacturing not only creates more jobs, but also brings supply chains back to the United States.”
“This proposed CHIPS funding will further support Texas Instruments’ investment in its new semiconductor fab in Lehi —and enhance Utah’s vital role in our national defense and economic success,” said U.S. Senator Mitt Romney. “I was an original sponsor of the CHIPS and Science Act—which made today’s announcement possible—because in order to compete on the world stage, we must continue to promote innovation, foster scientific talent, and expand research here at home. Texas Instruments’ expanded operations will help make the United States more self-reliant for chips essential to our national security and economy.”
TI has a long-standing commitment to responsible, sustainable manufacturing and environmental stewardship. As part of this commitment, TI continually invests in its fabrication processes and equipment to reduce energy, material and water consumption, and greenhouse gas (GHG) emissions.
The company’s 300mm wafer fabs will be entirely powered by renewable electricity. Additionally, all of TI’s new 300mm fabs are designed to meet LEED Gold standards for structural efficiency and sustainability. TI’s 300mm manufacturing facilities bring advantages in reducing waste and improving water and energy consumption per chip.
TI semiconductors are and will increasingly play a critical role in helping reduce the impact on the environment, helping customers create smaller, more efficient and cost-effective technology solutions that in turn drive continued innovation in electrification and the expanded usage of renewable energy.
Original – Texas Instruments
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Texas Instruments Incorporated (TI) reported second quarter revenue of $3.82 billion, net income of $1.13 billion and earnings per share of $1.22. Earnings per share included a 5-cent benefit for items that were not in the company’s original guidance.
Regarding the company’s performance and returns to shareholders, Haviv Ilan, TI’s president and CEO, made the following comments:
- “Revenue decreased 16% from the same quarter a year ago and increased 4% sequentially. Industrial and automotive continued to decline sequentially, while all other end markets grew.
- “Our cash flow from operations of $6.4 billion for the trailing 12 months again underscored the strength of our business model, the quality of our product portfolio and the benefit of 300mm production. Free cash flow for the same period was $1.5 billion.
- “Over the past 12 months we invested $3.7 billion in R&D and SG&A, invested $5.0 billion in capital expenditures and returned $4.9 billion to owners.
- “TI’s third quarter outlook is for revenue in the range of $3.94 billion to $4.26 billion and earnings per share between $1.24 and $1.48. We continue to expect our effective tax rate to be about 13%.”
Original – Texas Instruments
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Texas Instruments announced a long-term collaboration with Delta Electronics, a global power and energy management manufacturer, to create next-generation electric vehicle (EV) onboard charging and power solutions. This work will leverage both companies’ research and development capabilities in power management and power delivery in a joint innovation laboratory in Pingzhen, Taiwan. Together, TI and Delta aim to optimize power density, performance and size to accelerate the realization of safer, faster-charging and more affordable EVs.
“The transition to electric vehicles is key to helping achieve a more sustainable future, and through years of collaboration with Delta Electronics, we have a solid foundation to build upon,” said Amichai Ron, senior vice president for Embedded Processing at TI. “Together with Delta, we will use TI semiconductors to develop EV power systems like onboard chargers and DC/DC converters that are smaller, more efficient and more reliable, increasing vehicle driving range and encouraging more widespread adoption of electric vehicles.”
“Delta has been developing high-efficiency automotive power products, systems and solutions since 2008 to help reduce transportation-related carbon emissions,” said James Tang, executive vice president of Mobility and head of the Electric Vehicle Solutions business group at Delta Electronics.
“Through the establishment of this joint innovation laboratory with TI, Delta intends to leverage TI’s abundant experience and advanced technology in digital control and GaN to enhance the power density and performance of our EV power systems. With more leading-edge product development and design capabilities, we aim to achieve closer technology exchange and collaboration to accelerate product development and improve product safety and quality. We look forward to furthering our technology leadership and creating a win-win situation in the rapidly developing electric vehicle market.”
Three phases of development for next-generation automotive power solutions
- Phase one for the collaboration focuses on Delta’s development of a lighter-weight, cost-effective 11kW onboard charger, using TI’s latest C2000™ real-time microcontrollers (MCUs) and TI’s proprietary active electromagnetic interference (EMI) filter products. The companies are working together using TI’s products to reduce the charger’s size by 30% while achieving up to 95% power conversion efficiency.
- In phase two, TI and Delta will leverage the latest C2000 real-time MCUs for automotive applications to enable automakers to achieve automotive safety integrity levels (ASILs) up to ASIL D, which represents the strictest automotive safety requirements. Highly integrated automotive isolated gate drivers will further enhance the power density of onboard chargers, while also minimizing overall solution size.
- In phase three, the two companies will collaborate to develop the next generation of automotive power solutions, capitalizing on TI’s more than 10 years of experience in developing and manufacturing products with gallium nitride (GaN) technology.
“The rapid growth of electronics in automotive applications has enabled more feature-rich, efficient and safer vehicles. However, technical challenges remain,” said Luke Lee, president of Taiwan, Japan, Korea and South Asia, Texas Instruments. “Having been in Taiwan for 55 years, coupled with decades of experience in automotive power management, TI has built a strong connection with the local automotive industry. Establishing this collaboration and joint innovation laboratory with Delta is just one more way TI is driving vehicle electrification forward.”
Original – Texas Instruments
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Texas Instruments introduced the industry’s first 650V three-phase GaN IPM for 250W motor drive applications. The new GaN IPM addresses many of the design and performance compromises engineers typically face when designing major home appliances and heating, ventilation and air-conditioning (HVAC) systems.
The DRV7308 GaN IPM enables more than 99% inverter efficiency, optimized acoustic performance, reduced solution size and lower system costs. It is on display at the Power Electronics, Intelligent Motion, Renewable Energy and Energy Management (PCIM) Conference, held June 11-13 in Nuremberg, Germany.
“Designers of high-voltage home appliances and HVAC systems are striving to meet higher energy-efficiency standards to support environmental sustainability goals around the world,” said Nicole Navinsky, Motor Drives business unit manager at TI. “They are also addressing consumer demand for systems that are reliable, quiet and compact. With TI’s new GaN IPM, engineers can design motor driver systems that deliver all of these expectations and operates at peak efficiency.”
Improve system efficiency and reliability with TI GaN
Worldwide efficiency standards for appliances and HVAC systems such as SEER, MEPS, Energy Star and Top Runner are becoming increasingly stringent. The DRV7308 helps engineers meet these standards, leveraging GaN technology to deliver more than 99% efficiency and improve thermal performance, with 50% reduced power losses compared to existing solutions.
In addition, the DRV7308 achieves industry-low dead time and low propagation delay, both less than 200ns, enabling higher pulse-width modulation (PWM) switching frequencies that reduce audible noise and system vibration. These advantages plus the higher power efficiency and integrated features of the DRV7308 also reduce motor heating, which can improve reliability and extend the lifetime of the system.
To learn more about the benefits of GaN technology, read the white paper, “How three-phase integrated GaN technology maximizes motor-drive performance.”
Advanced integration and high power density reduce solution size and costs
Supporting the trend of more compact home appliances, the DRV7308 helps engineers develop smaller motor drive systems. Enabled by GaN technology, the new IPM delivers high power density in a 12mm-by-12mm package, making it the industry’s smallest IPM for 150W to 250W motor-drive applications.
Because of its high efficiency, the DRV7308 eliminates the need for an external heatsink, resulting in motor drive inverter printed circuit board (PCB) size reduction of up to 55% compared to competing IPM solutions. The integration of a current sense amplifier, protection features and inverter stage further reduces solution size and cost.
To learn about designing more efficient, compact motor systems, see the GaN IPM page on TI.com.
This high-efficiency, high-voltage GaN IPM is the latest example of TI innovations to help solve engineering challenges and transform motor designs.
TI’s reliable high-voltage technology at PCIM 2024
Visitors to PCIM can see new products and solutions from TI that are enabling the transition to a more sustainable future with reliable high-voltage technology in Hall 7, Booth 652. In addition to the DRV7308 GaN IPM, TI highlights at PCIM include:
- Next-generation electric vehicle (EV) propulsion system: TI is demonstrating a new 800V, 750kW SiC-based scalable traction inverter system for EV six-phase motors, in collaboration with EMPEL Systems. The demonstration features high power density and efficiency using TI’s high-performance isolated gate drivers, isolated DC/DC power modules and Arm® Cortex®-R MCUs.
- TI’s manager of high-voltage power systems applications, Sheng-Yang Yu, will speak on June 11 in the Markt & Technik panel discussion: “Will SiC ultimately Hold its Own against GaN?”
- TI’s manager of renewable energy systems, Harald Parzhuber, will speak on June 12 in Bodo’s Power Systems panel discussion: “GaN Wide Bandgap Design, the Future of Power.”
Original – Texas Instruments
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Texas Instruments Incorporated reported first quarter revenue of $3.66 billion, net income of $1.11 billion and earnings per share of $1.20. Earnings per share included a 10-cent benefit for items that were not in the company’s original guidance.
Regarding the company’s performance and returns to shareholders, Haviv Ilan, TI’s president and CEO, made the following comments:
- “Revenue decreased 16% from the same quarter a year ago and 10% sequentially, as revenue declined across all end markets.
- “Our cash flow from operations of $6.3 billion for the trailing 12 months again underscored the strength of our business model, the quality of our product portfolio and the benefit of 300mm production. Free cash flow for the same period was $940 million.
- “Over the past 12 months we invested $3.7 billion in R&D and SG&A, invested $5.3 billion in capital expenditures and returned $4.8 billion to owners.
- “TI’s second quarter outlook is for revenue in the range of $3.65 billion to $3.95 billion and earnings per share between $1.05 and $1.25. We continue to expect our effective tax rate to be about 13%.”
Free cash flow, a non-GAAP financial measure, is cash flow from operations less capital expenditures.
Earnings summary
(In millions, except per-share amounts) Q1 2024 Q1 2023 Change Revenue $ 3,661 $ 4,379 (16) % Operating profit $ 1,286 $ 1,934 (34) % Net income $ 1,105 $ 1,708 (35) % Earnings per share $ 1.20 $ 1.85 (35) % Cash generation
Trailing 12 Months (In millions) Q1 2024 Q1 2024 Q1 2023 Change Cash flow from operations $ 1,017 $ 6,277 $ 7,736 (19) % Capital expenditures $ 1,248 $ 5,337 $ 3,336 60 % Free cash flow $ (231) $ 940 $ 4,400 (79) % Free cash flow % of revenue 5.6 % 22.6 % Cash return
Trailing 12 Months (In millions) Q1 2024 Q1 2024 Q1 2023 Change Dividends paid $ 1,183 $ 4,615 $ 4,359 6 % Stock repurchases $ 3 $ 193 $ 3,129 (94) % Total cash returned $ 1,186 $ 4,808 $ 7,488 (36) % Original – Texas Instruments
