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Texas Instruments is to invest US$1 billion in expanding its Clark and Baguio operations
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TI is expanding its chip manufacturing sites to increase capacity amid a global chip shortage
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The investment is in line with the CHIPS and Science Act of 2022 signed into law by US President Joe Biden in 2022
Texas Instruments Inc. (TI) is investing US$1 billion to expand its Clark and Baguio City chip manufacturing sites.
The investment plan was announced by United States officials during the US-ASEAN Business Council’s (USBAC) meeting with President Ferdinand R. Marcos Jr. in Malacañang on August 9.
TI plans to submit in two weeks an application for the expansion of its Clark and Baguio City sites, which may make the company eligible for tax relief under the Corporate Recovery and Tax Incentives for Enterprises or CREATE.
CREATE provides private enterprises more than P1 trillion worth of tax relief over the next 10 years.
The US maker of microprocessors seeks to increase capacity in the region amid the shortage of chips in the global economy.
The expansion aligns with the CHIPS and Science Act of 2022, signed into law by US President Joe Biden last year.
The law is seen to strengthen US manufacturing, supply chains, and national security, and invest in research and development, science and technology, and the workforce of the future to keep the US the “leader in the industries of tomorrow,” including nanotechnology, clean energy, quantum computing, and artificial intelligence.
Marcos welcomed TI’s investment plans, saying, “These (are) areas and sectors in the economy that we would like to be involved in.”
“And we have a great deal of [dependence] already… of our exports. We do not see why we should not further support and enhance the sector of the economy because it has (done) well,” he said.
USBAC is the single US organization operating within the Association of Southeast Asian Nations and formally recognized under the ASEAN Charter. The group meets annually with the ASEAN finance, trade, and energy ministers in their annual meetings.
Globally, the council’s membership comprising more than 170 companies generates nearly US$7 trillion in revenue and employs more than 14.5 million people.
Thirty US companies join this year’s mission, the biggest delegation in more than 10 years.
