Texas Instruments Incorporated : Corporate Ctizenship Report

Contents

Cover image: TI's first on-site rooftop solar installation at its Bangalore, India, facility.

TI at a glance

Founded in 1930

Headquartered in Dallas, Texas

Our semiconductor chips can be found in every type of electronic system - from electric vehicles to industrial robots, solar panels to satellites.

15 manufacturing sites worldwide,

producing tens of billions of chips each year

$17.52 billion

$13.04 $3.37 $1.11

Analog Embedded Other (in billions of dollars)

Capital expenditures: $5.1 billion

R&D: $1.9 billion

Key markets

Industrial - 40%

Automotive - 34% Personal electronics - 15% Communications equipment - 5% Enterprise systems - 4%

Other - 2%

About 34,000 employees

≈15,000 in the Americas

≈17,000 in Asia-Pacific

≈2,000 in Europe

Principal manufacturing and design operations1

Letter from our CEO

For decades, Texas Instruments has operated with a passion to create a better world by making electronics more affordable through semiconductors. With each generation, semiconductor technology has become more reliable, more affordable and lower in power, making it possible for semiconductors to go into electronics everywhere. Our passion continues to be alive today, as we help customers develop electronics and new applications that are contributing to a more sustainable future.

Our founders had the foresight to know that passion alone was not enough, and that building a great company required a special culture to thrive for the long term. For many years, we have run our business with three overarching ambitions in mind:

• First, we will act like owners who will own the company for decades.

• Second, we will adapt and succeed in a world that is ever-changing.

• And third, we will be a company that we are personally proud to be a part of and that we would want as our neighbor.

With these ambitions guiding our decision-making for the long term and our products helping create a better world, we are confident that our collective efforts will be impactful and long lasting.

We take great pride in our commitment to being a good corporate citizen, which impacts our communities and the world in two ways.

First, our ambitions guide how we run our business and are foundational to ensuring that we operate in a sustainable, socially thoughtful and environmentally responsible manner. Central to these ambitions is a belief that in order for all stakeholders to benefit, the company must grow stronger over the long term.

Second, semiconductors will play a critical role in creating a better world and helping reduce the impact on the environment.

As engineers, we are fortunate to work on exciting technology that helps our customers innovate to create a better world. Technology is the foundation of our company, and our semiconductor products are core to the development of electric vehicles, energy storage systems, renewable energy applications and many other sustainable technologies.

In 2023, we continued to invest in and expand our internal manufacturing capacity roadmap for the long term while continuing to reduce our environmental impact. Our industry- leading 300mm wafer fabs will be entirely powered by renewable electricity by 2025, with additional milestones to reach 100% across our U.S. operations by 2027, and 100% worldwide by 2030.

I am proud of how TIers performed in 2023. We ensured safe workplaces for our employees, delivered innovative technology and applications, added additional capacity to support customer demand, and gave back to our communities when needs continued to be great.

You can count on us to stay true to our ambitions: to think like owners for the long term, adapt and succeed in a world that's ever-changing, and behave in a way that makes our stakeholders proud. When we're successful, our employees, customers, communities and shareholders all win.

Haviv Ilan

President and CEO

We take great pride in being a good corporate citizen, which impacts our communities and the world in two ways:

• First, our ambitions guide how we run our business and are foundational to ensuring that we operate in a sustainable, socially thoughtful and environmentally responsible manner. Central to these ambitions is a belief that in order for all stakeholders to benefit, the company must grow stronger over the long term.
• Second, semiconductors will play a critical role in creating a better world and helping reduce environmental impacts.

Since 2006, TI has published program information, goals, progress on goals and relevant data, including a focus on our workplace, environmental sustainability and community impact as part of its commitment to being a good corporate citizen.

Report overview

As in previous years, our 2023 Corporate Citizenship Report provides insight into how we think about - and how we perform

• in various areas relevant to our business, using these widely accepted reporting frameworks:
• • The Global Reporting Initiative (GRI).2
  • The Task Force on Climate-Related
    Financial Disclosures (TCFD).3
  • The Sustainability Accounting
    Standards Board (SASB).4
  • The CDP disclosure framework.5

We make these disclosures available at TI.com/citizenship.

A team of TIers volunteer to refresh the community garden outside of Ignacio Zaragoza Elementary School in Dallas, Texas.

Working at TI

We bring together 34,000 of the world's smartest people to create a better world by making electronics more affordable through semiconductors.

Building stronger communities

Our ambition to be a company that we are personally proud to be a part of and would want as our neighbor guides our work to build stronger communities.

Creating a sustainable future

TI continued to invest in its fabrication processes and equipment to reduce energy, material and water consumption, and greenhouse gas (GHG) emissions.

22%

84%

Reduction in Scope 1 and Scope 2 GHG emissions (vs. 2015)

Waste diverted from landfills

19%

29%

Renewable electricity used

Water reused

TI takes great pride in being a good corporate citizen and has a long-standing commitment to sustainable manufacturing and environmental stewardship.

For nearly a decade, our environmental sustainability strategy has aligned with our long-term capacity plan to meet demand, as semiconductor growth in electronics - particularly in industrial and automotive markets - is expected to continue well into

the future.

As a semiconductor company that manufactures tens of billions of chips per year, our primary focus is to drive efficiencies in our fabrication process. We set multiyear sustainability goals to guide our work, aimed at reducing GHGs, energy and water consumption, and landfill waste (outlined on the following page).

Additionally, we make significant annual investments across our manufacturing footprint to reduce negative environmental impacts, including:

• Implementing hundreds of water and energy conservation projects.
• Installing newer, more efficient manufacturing technologies.
• Retrofitting existing factory equipment with advanced abatement technologies.
• Reducing the use of nonessential fluorinated gases.
• Steadily increasing our use of electricity from renewable sources.
• Reusing and recycling materials and using benign substances.

These investments are advancing our sustainability efforts as we expand production capacity. In the last three years, TI opened or began construction on five new 300mm semiconductor wafer fabrication sites in the U.S.

Expanding our commitments

Increases in chip production require additional action to help achieve our goals. In early 2024, we announced aggressive new targets to expand our use of renewable electricity to reduce scope 2 GHGs. We aim to use renewable sources to power:

• 100% of TI's 300mm factories by 2025.
• 100% of our U.S. operations by 2027.
• 100% of our global operations by 2030.

Continued investments

In 2023, TI installed more efficient abatement systems and remote plasma cleaning methods, and procured 93,572 more megawatt hours (MWh) of renewable electricity than the year before. While TI's absolute scope 1 and scope 2 GHG emissions increased slightly over 2022 due to ramp-up activities and a 3.9% increase in energy use, these investments have enabled us to reduce these emissions by 22% since 2015.

Additionally, the water-efficiency projects we completed conserved 264 million gallons in 2023, the equivalent of 4.1% of TI's 2022 water use. We also diverted 84% of materials from landfills, further mitigating environmental impacts.

We know there's more work to be done. With our ambitions guiding our decision-making for the long term and our products helping create a better world, we are confident that our collective efforts will be impactful and long lasting.

Harald P. works to design high-voltage power conversion systems in Freising, Germany.

TI semiconductor products are and will increasingly play a critical role in helping reduce the impact on the environment. Our semiconductors are

helping customers create smaller, more efficient and cost-effective technology solutions that in turn drive continued innovation in electrification, renewable energy and energy storage.

Our commitment to reduce GHG emissions

TI sets GHG emission and energy reduction goals to reduce negative environmental impacts and improve efficiency.

By 2025, TI aims to reduce absolute scope 1 and 2 GHG emissions by 25% from a 20158 base year.

Actions we are taking

We have taken steps to reduce GHG emissions in our operations, shipping and distribution channels, and throughout our supply chain for years.

Scope 1

TI directly emits scope 1 GHG emissions from gases used in manufacturing and fuels consumed on-site, such as natural gas and diesel.9 We are working to reduce these emissions by:

• Upgrading manufacturing tools and technologies to improve efficiency.
• Reducing the use of nonessential fluorinated gases and using alternative gases and chemicals.
• Installing thermal point-of-use abatement devices on tools that treat the exhaust gases used in semiconductor manufacturing.

Scope 2

TI indirectly emits scope 2 GHG emissions from electricity purchased for manufacturing or other operations. To curtail these emissions, we:

• Purchase and use renewable electricity sources around the world.
• Increase the energy efficiency of our manufacturing systems, buildings and tools.

Scope 3

TI reports scope 3 emissions for business travel in its annual CDP survey. In 2024, we will engage a third party to conduct a full accounting and analysis of all applicable upstream and downstream scope 3 categories. TI plans to begin reporting additional relevant scope 3 emission categories in 2025.

Monitoring potential risks

TI faces potential risks and opportunities associated with climate change, which we describe in detail in its most recent CDP response. For information about climate change-related governance and management strategies, see our CDP response, the Emissions section of the GRI Index and the TCFD Index.

Performance

As of year-end 2023, TI had reduced scope 1 and 2 absolute emissions by 22% versus 2015. Thanks to using renewable electricity and installing abatement and efficiency tools, we limited GHG increases to 2.0% over 2022, despite a 3.9% increase in energy use.

For additional GHG data, see Performance Data in the appendix.

Total GHG emissions (million MTCO2e)