The US firm Texas Instruments Inc. (TI) is a global leader in microprocessors and semiconductors, with a history of over 90 years. TI has been operating in the Philippines since 1979, and currently has two chip manufacturing sites in Clark, Pampanga and Baguio City. These sites produce analog and embedded processing chips for various applications, such as automotive, industrial, communications, and consumer electronics.
Recently, TI announced its plan to invest around $1 billion for the expansion of its facilities in Clark and Baguio City. This plan was revealed during President Ferdinand R. Marcos Jr.'s meeting with the US-ASEAN Business Council at Malacañan Palace on August 9, 2023. TI is expected to submit an application for the expansion in two weeks, which may qualify for the Corporate Recovery and Tax Incentives for Enterprises (CREATE) law that provides tax incentives for large-scale investments².
TI's investment plan is in line with the CHIPS and Science Act of 2022, a US law that aims to boost the domestic production of chips and support research and development in science and technology. The law was signed by US President Joe Biden in response to the global chip shortage that has affected various industries, especially the automotive sector. The law also seeks to strengthen the US's competitiveness and national security in the face of rising challenges from China and other countries.