Recently, the US government's plan to promote the development of domestic semiconductor manufacturing industry again approved a large sum of money, the Biden administration announced that it will provide $1.6 billion in subsidies and $3 billion in loans to Texas Instruments under the Chip Act.

The money will be used to help pay for a plant in Utah and two in Texas, projects that will cost about $18 billion by the end of 2029 and are expected to create about 2,000 manufacturing jobs and thousands of construction jobs, the Commerce Department said in a statement.

Texas Instruments plans to invest a total of about $40 billion in the two states, including two additional plants in Sherman, Texas.

Texas Instruments makes a wide variety of chips and has the largest customer base in the semiconductor industry.

In addition to receiving subsidies and loans, the company is expected to benefit from a 25% tax credit under the 2022 Chip and Science Act. That could amount to $6 billion to $8 billion, the company said in a statement.

Texas Instruments reported second-quarter earnings of $1.13 billion on $3.82 billion in revenue. Revenue fell 16% from the same period last year, the seventh consecutive contraction. Industrial and automotive continued to decline sequentially, while all other end markets increased.

TI Chief Financial Officer Rafael Lizardi said Texas Instruments' plants are running close to full capacity and inventories are essentially flat. Executives added that the company was able to fill most orders immediately after they were received - an indication that supply and demand were roughly in balance. In the conference call, Rafael Lizardi attributed the reduction in manufacturing unit costs to an increase in in-house manufacturing and a greater focus on 300mm wafer (12-inch fab) technology.

In recent years, Texas Instruments has been investing heavily in new plants in an effort to bring much of the production back in-house. Texas Instruments said the move, once complete, will give it a cost advantage over competitors. The company said it would continue with the plan.