Texas Instruments Plans Massive $60+ Billion Investment in US Semiconductor Production
In a move set to reshape the domestic technology landscape, Texas Instruments (TI) has announced plans to invest over $60 billion to significantly expand its semiconductor manufacturing capacity across the United States. This initiative represents the largest investment in foundational semiconductor manufacturing in U.S. history by a single company.
The ambitious plan focuses on building or expanding seven large-scale semiconductor fabrication plants (fabs) located across three major manufacturing sites in Texas and Utah. This expansion aims to create more than 60,000 direct and indirect U.S. jobs, bolstering the nation’s tech workforce.
Scaling Up Foundational Chip Production
TI specializes in producing foundational semiconductors, specifically analog and embedded processing chips. While not always the bleeding-edge logic chips, these components are absolutely critical, powering nearly every electronic system imaginable – from the smartphones in our pockets and the vehicles we drive to complex data centers and advanced satellite systems like Starlink.
The investment is strategically targeted at building dependable, low-cost 300mm manufacturing capacity at scale. Utilizing larger 300mm wafers allows for greater efficiency and lower costs per chip, essential for meeting the steadily growing demand across diverse industries. At full operational capacity, these seven fabs are projected to manufacture hundreds of millions of American-made chips daily.
Key Manufacturing Sites Under Development
The expansion effort is concentrated at three strategic mega-sites:
Sherman, Texas: As TI’s largest mega-site, up to $40 billion is allocated here. The site is planned to house four fabs (SM1, SM2, SM3, and SM4). SM1 is remarkably expected to begin initial production within the current year (2025), just three years after breaking ground. Construction on the exterior shell of SM2 is complete, with plans for SM3 and SM4 already in place to meet future demand.
Richardson, Texas: Here, TI is ramping up production at RFAB2, its second 300mm analog fab, building on the success of RFAB1, the world’s first 300mm analog fab introduced in 2011.
Lehi, Utah: LFAB1, TI’s first 300mm wafer fab in Lehi, is currently ramping production, while construction on LFAB2 is well underway. LFAB2 will be connected to LFAB1, creating a connected manufacturing complex.
Strengthening US Supply Chains
This significant investment comes amid a global push to secure domestic semiconductor supply chains and maintain technological leadership, particularly in areas like Artificial Intelligence (AI). The US government has prioritized increasing domestic chip manufacturing through initiatives like the CHIPS and Science Act. TI previously announced it would receive up to $1.6 billion in CHIPS Act funding for its sites, though the company states those funds are distinct from this newly announced $60+ billion endeavor.
Leading American companies across various high-growth sectors have voiced strong support for TI’s domestic manufacturing expansion, underscoring their reliance on these crucial chips:
Apple: Uses TI’s U.S.-made chips to power various products, emphasizing continued collaboration on innovation and U.S. manufacturing.
Ford: Highlights the importance of TI’s investment for securing a robust domestic supply chain needed for the future of mobility.
Medtronic: Relies on TI’s semiconductors for precision and performance in life-saving medical technologies, crediting TI as a vital partner, especially during periods of chip shortages.
NVIDIA: Shares TI’s goal of revitalizing U.S. manufacturing, particularly for building domestic AI infrastructure, and looks forward to collaboration.
SpaceX: Leverages TI’s high-speed 300mm SiGe technology from the Sherman site for its Starlink satellite internet service, stressing the need for U.S.-made semiconductors for supply chain security and performance.
This historic investment by Texas Instruments is poised to significantly boost U.S. foundational semiconductor production, reinforcing domestic supply chains, creating tens of thousands of jobs, and laying the groundwork for continued innovation across a wide range of industries for decades to come.
