How Texas Instruments’ potential $30 billion investment stacks up against other big-ticket projects

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CORRECTION, 11.30am, November 18, 2021: Corrected this story to reflect a significant change. You can find the full fix at the end of the article.

Texas Instruments’ decision on Wednesday to build up to four semiconductor manufacturing plants in Sherman involves an impressive investment of up to $ 30 billion.

Once fully built, how would the Dallas-based company’s chip bet compare to other major projects that ended up in Texas?

It’s roughly 30 times the $ 1 billion investment Toyota North America made when the company moved its headquarters to Plano and Tesla when it began building a giant electric vehicle manufacturing facility in the Austin area which is about to be completed.

The same goes for the $ 1.3 billion it took to build the Dallas Cowboys’ arena, AT&T Stadium in Arlington.

It’s roughly 21 times the $ 1.4 billion General Motors invested in its sprawling Arlington assembly plant from 2015 to 2019. This plant originally opened in 1954 with an investment of $ 35 million, which is now $ 360 million.

And it’s roughly three times the decade-long investment in AllianceTexas, the 27,000 acre master plan development in North Fort Worth that’s a major shipping and transportation hub. The total investment in 2020 exceeded $ 11.9 billion, according to an annual report on the economic impact of the project.

Or think of the projects that qualify for money from the highly touted Texas Enterprise Fund that has been used by the governments. Rick Perry and Greg Abbott to encourage companies to expand or move to the Lone Star State.

From 2004 to the end of last month, total investments made by the fund were US $ 34.8 billion according to Texas data.

TI did not receive any corporate fund money for the Sherman Project, said Sheridan Nolan, Abbott’s press assistant. Instead, the company sought local tax breaks and credits through a government program called Chapter 313, which will be discontinued later this year.

However, the corporate fund’s 17-year total includes TI’s previous $ 3.1 billion investment in a Richardson semiconductor plant that is under construction and due to be completed soon. It is projected that 488 jobs will be created, with the state offering TI a $ 5.1 million grant payable when the jobs are created.

TI and the University of Texas at Dallas received $ 50 million from the fund in 2005 when TI built another $ 3 billion semiconductor plant in Richardson. This money was ultimately granted to UTD as part of a research cooperation.

On October 31, the largest capital investment to raise corporate funds was the $ 3.5 billion expansion of the Motiva refinery in Port Arthur, about 90 miles east of Houston. In 2010, it received a $ 2 million state grant to help create 300 jobs.

Other major manufacturers are also seeking significant investments in Texas that could add thousands of new jobs to the state.

Samsung is looking for locations near its existing north Austin facility for a new $ 17 billion chip factory that could create 1,800 jobs.

Rivian Automotive Inc., headquartered in Irvine, Calif., Is targeting a $ 5 billion investment in a new electric vehicle assembly plant in Fort Worth and other locations across the country. The company expects its capital expenditures to soar over $ 8 billion by the end of 2023, according to a regulatory filing dated Nov. 5.

Rivian, which operates a facility in central Illinois, is the newest electric vehicle darling, trading at $ 120.8 billion when it went public on Nov. 9.

CORRECTION: An earlier version of this article incorrectly stated that Texas Instruments received $ 50 million from the Texas Enterprise Fund in 2005. The $ 50 million ultimately went to the University of Texas at Dallas, which worked with TI on the project.

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https://www.dallasnews.com/business/local-companies/2021/11/17/how-texas-instruments-potential-30-billion-investment-stacks-up-against-other-big-ticket-projects/