The U.S. government provided $4.6 billion in subsidies and loans to Texas Instruments

The U.S. government's plan to boost the country's semiconductor manufacturing industry has given another big boost, with the federal government providing Texas Instruments with a $1.6 billion grant and a $3 billion loan under the 2022 Chip and Science Act.

In a statement released Friday, the Commerce Department said the money will be used to help pay for a plant in Utah and two in Texas, projects that will cost about $18 billion by the end of 2029 and are expected to create about 2,000 manufacturing jobs and thousands of construction jobs.

Texas Instruments plans to invest a total of about $40 billion in the two states, including two more plants in Sherman, Texas, Bloomberg reported.

Texas Instruments produces a wide variety of wafers and has the largest customer base in the semiconductor industry. In addition to receiving subsidies and loans, the company is expected to benefit from a 25% tax credit under the 2022 Wafer and Science Act. That could amount to $6 billion to $8 billion, the company said in a statement.