Texas Instruments Invests $60 Billion in U.S. Chip Manufacturing

Texas Instruments has unveiled a monumental $60 billion initiative aimed at enhancing domestic semiconductor manufacturing with plans for seven facilities in Utah and Texas. This investment marks the largest single effort by a U.S. company in the semiconductor industry.

The investment is designed to bolster a domestic supply chain capable of supporting semiconductor needs across various sectors, including automotive, smartphones, and data centers. Collaborations with major players like Nvidia, Apple, Ford, and SpaceX are expected to generate 60,000 new jobs in the U.S.

According to Haviv Ilan, President and CEO of Texas Instruments, the company is focused on producing reliable and cost-effective 300mm capacity chips, which are essential for nearly every electronic system. The investment will see the establishment of two additional fabrication plants in Sherman, Texas, bringing the total number of facilities on that site to four. Furthermore, it aims to ramp up production in Richardson, Texas, and Lehi, Utah.

The Sherman facilities alone will encompass 1.3 million square feet of clean room space dedicated to chip manufacturing, with expected daily production of hundreds of millions of chips. Approximately $40 billion of the investment will be allocated to these sites.

Industry analysts suggest that this investment has significant implications for the domestic semiconductor supply, although realizing the benefits of this increased manufacturing capability will take time. Stephen Sopko of HyperFrame Research notes that the construction of fabs is a lengthy process, emphasizing the need for high-quality semiconductors for U.S. electronics and manufacturing growth in the coming years.

This move by Texas Instruments follows the broader push for revitalizing U.S. manufacturing, supported by recent governmental initiatives aimed at bolstering the semiconductor industry. Former President Biden's signing of the CHIPS and Science Act in 2022 provided $53 billion to foster domestic semiconductor production, further emphasizing the importance of self-sufficiency in this critical sector.