Texas Instruments Claims To Make History With $60B Investment On US Chip Fabs
Texas Instruments has committed to spending more than $60 billion to expand its U.S. manufacturing capacity, marking what the company claims is the largest-ever investment in foundational semiconductor manufacturing in the history of the U.S. As part of the expansion, Texas Instruments says its investment will support more than 60,000 jobs at its new manufacturing mega-sites in Texas and Utah. The announcement follows similar ones from the likes of TSMC and others.
The massive investment will see Texas Instruments build and ramp seven large-scale connected fabs, including two new facilities in Texas. Its first new fab site, called SM1, is located in Sherman, Texas and is slated to begin initial production this year, three years after first breaking ground.
Additionally, Texas Instruments says construction is already complete on the exterior shell of a second new fab in Sherman called SM2, while incremental investment plans will see two more fabs, SM3 and SM4, erected in Sherman as well.
Meanwhile, the company says its second fab location in Richardson, Texas, called RFAB2, continues to ramp to full production. And in Lehi, Utah, Texas Instruments is ramping its first 300mm wafer fab at that location, while construction of a new facility called LFAB2 is underway (and will connect to LFAB1 when complete).
"TI is building dependable, low-cost 300mm capacity at scale to deliver the analog and embedded processing chips that are vital for nearly every type of electronic system," said Haviv Ilan, president and CEO of Texas Instruments.
"Leading U.S. companies such as Apple, Ford, Medtronic, NVIDIA, and SpaceX rely on TI’s world-class technology and manufacturing expertise, and we are honored to work alongside them and the U.S. government to unleash what’s next in American innovation," Ilan added.
Texas Instruments and U.S. Secretary Of Commerce Howard Lutnick both credited the Trump administration for encouraging big investments in domestic chip manufacturing. According to Texas Instruments, its fabs across three manufacturing mega-sites in Texas and Utan will collectively churn out hundreds of millions of chips each day when fully operational, to "ignite a bold new chapter in American innovation."
That said, the entirety of Texas Instruments' domestic investment is note solely tied to the Trump administration. It also includes investments that were already planned, which helped the company secure up to $1.6 billion in grants from the previous Biden administration, along with up to $3 billion in loans. That all stemmed from the CHIPS Act after Texas Instruments announced plans to invest at least $18 billion in U.S. chip manufacturing.
Still, this is a bigger investment than previously announced.
