Texas Instruments Plans Lehi, Utah, Semiconductor Factory
As an incentive, the Utah Governor’s Office of Economic Opportunity awarded the company a post-performance tax reduction. The corporate incentive is part of the state’s Economic Development Tax Increment Financing program.
“Our decision to build a second fab in Lehi underscores our commitment to Utah, and is a testament to the talented team there who will lay the groundwork for another important chapter in TI’s future,” said Haviv Ilan, TI executive vice president and chief operating officer, and incoming president and CEO. “With the anticipated growth of semiconductors in electronics, particularly in industrial and automotive, and the passage of the CHIPS and Science Act, there is no better time to further invest in our internal manufacturing capacity.”
TI may receive up to 30% of the additional state taxes it will pay over the 20-year life of the agreement in the form of a Utah Legislature-authorized Economic Development Tax Increment Financing tax credit. Each year TI meets the criteria in its contract with the state, it will qualify for a portion of the total tax credit.
“We’re excited Texas Instruments has decided to build a second factory in Lehi,” noted Ryan Starks, the Office of Economic Opportunity’s executive director. “This new factory will bring significant capital investment to the state along with hundreds of high-tech jobs. This is a big win for the state and Lehi City.”
Headquartered in Dallas, Texas Instruments Designs and manufactures semiconductors and various integrated circuits, which it sells to electronics designers and manufacturers globally.
“The federal government recognized at the front end of the pandemic that our country’s reliance on overseas semiconductor manufacturing is a national security issue. This project is the direct result of significant investment in strengthening our country’s supply chain,” added Scott Cuthbertson, president and CEO of EDCUtah. “Texas Instruments’ commitment to investing in Utah will have a transformational impact on Lehi and Utah’s manufacturing industry.”
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