Texas instruments Commits to $60 Billion Investment for 7 US Chip Plants
Texas Instruments gave its US manufacturing capabilities a huge boost with the announcement of a new $60 billion investment. As the White House has pushed chipmakers to bring manufacturing to the US, several industry leaders, including Apple, Micron, Nvidia, and TSMC, have announced significant investments, both in new projects and construction already underway. TI has plants in various stages of construction in Utah and Texas.
Unlike Micron and TSMC, which are known for building ever-smaller, bleeding-edge nodes, TI focuses on foundational chips. As Reuters notes, TI builds chips for a range of industries. It is also well known for its calculators, which are a staple for high school and college classes and college entrance exams.
Credit: Texas Instruments
'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 TI, in a statement. 'Leading US 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 US government to unleash what's next in American innovation.'
At this point, TI has two fabs in Lehi, Utah, two in Richardson, Texas, and two in Sherman, Texas, with two more planned. Lehi's LFAB1 fab produces 300mm wafers, while LFAB2 is under construction. Both of the fabs in Richardson are producing wafers, though RFAB2 hasn't yet reached full production.
Meanwhile, Sherman's massive fab cluster is just getting started. Fab SM1 is expected to start production this year. TI says that construction is done on the exterior of Fab SM2. According to TI, the three fab sites will eventually support more than 60,000 jobs.
Credit: Texas Instruments
The White House is considering large tariffs for semiconductors, which is likely playing a significant role in the flurry of investment announcements we've seen from chipmakers over the past few months. Several companies have sent letters to the Commerce Secretary to argue against tariff moves that could hurt their business. Some, like TSMC, have argued that the tariffs could put enough strain on their revenue to undermine the construction efforts they have underway in the US.
Although today's announcement marks TI's biggest investment in manufacturing facilities in the US, the company also made commitments prior to this year. In 2024, it secured approval of a $1.61 billion subsidy from the CHIPS Act and announced plans to invest as much as $18 billion then.
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