Today, the Utah Governor’s Office of Economic Opportunity awarded Texas Instruments Incorporated (TI) a post-performance tax reduction for its new semiconductor factory in Lehi, Utah. The corporate incentive is part of the state’s Economic Development Tax Increment Financing (EDTIF) program.
“Companies like Texas Instruments continue to invest in Utah because of our world-class business climate and exceptional workforce,” said Gov. Cox. “TI’s new semiconductor factory will solidify Utah as a global semiconductor manufacturing hub for generations to come.”
As part of the agreement, TI plans to add 800 new, high-tech jobs and invest $11 billion in Utah. This investment is the largest economic investment in Utah history.
“We’re excited Texas Instruments has decided to build a second factory in Lehi,” said 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.”
Texas Instruments designs and makes semiconductors that are then sold to electronics designers and manufacturers all over the world. With its headquarters in Dallas, TX, the company has design, manufacturing, and sales operations in more than 30 countries with around 33,000 employees worldwide.
“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 chief executive officer. “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 (EDTIF) tax credit (U.C.A. 63N-2-106(2)). Each year TI meets the criteria in its contract with the state, it will qualify for a portion of the total tax credit.
“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,” said 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.”
“Lehi City has been pleased to have TI as a community partner. TI has brought great opportunities to our city, our state, and our country at a critical time in the semiconductor industry,” said Lehi City Mayor Mark Johnson. “We are excited for our relationship to continue with TI regarding this expansion.”
Tax Credit Projections
|Capital investment:||$11 Billion|
|New state tax revenue:||$111,451,554|
|EDTIF new state tax credit:||30%|
Learn more about the state’s post-performance EDTIF program here.
Learn more about TI’s new Lehi factory here.