Infographic of Texas Instruments producing analog chips from 300mm wafers with $60B U.S. semiconductor fab investment.
Texas Instruments (TI) is making a massive commitment. The analog chip giant plans to invest over $60 billion into its U.S. manufacturing. This bold move will expand its production of essential semiconductors. It aims to meet rising demand worldwide. This substantial investment marks the largest in foundational semiconductor manufacturing within the U.S.
Driving Domestic Semiconductor Manufacturing
TI’s investment targets three key “mega-sites” in the United States. These are located in Sherman and Richardson, Texas, and Lehi, Utah. The plan includes building or expanding seven semiconductor fabrication plants (fabs). The focus is on 300-millimeter wafer fabs. These are crucial for producing analog and embedded processing chips. These chips are vital for almost every electronic system. This includes vehicles, smartphones, data centers, and satellites.
The expansion is a long-term strategy. It builds on TI’s existing manufacturing footprint. For example, the Sherman site alone could see up to $40 billion invested for four fabs. Two of these are already under construction. Production has started or is ramping up at existing facilities like RFAB1 and RFAB2 in Richardson, and LFAB1 in Lehi.
Why This $60 Billion Investment Matters
This significant investment highlights several key trends in the semiconductor industry:
- Supply Chain Resilience: The COVID-19 pandemic exposed vulnerabilities in global supply chains. This investment strengthens the domestic supply of critical chips. It reduces reliance on overseas production.
- Growing Demand for Foundational Chips: While advanced logic chips get much attention, foundational chips are equally vital. These analog and embedded processors are essential components. They power countless everyday devices and industrial applications. TI’s investment addresses this consistently growing demand.
- Strategic U.S. Government Support: This initiative aligns with U.S. government efforts. Programs like the CHIPS and Science Act aim to revitalize domestic semiconductor manufacturing. TI has already received support, including $1.6 billion in CHIPS funding.
- Long-Term Capacity Building: TI emphasizes building “dependable, low-cost 300-mm capacity at scale.” This ensures a stable and efficient supply for decades. The company expects to manufacture hundreds of millions of U.S.-made chips daily.
Impact on the Industry and Economy
This multi-billion dollar investment will have a wide-ranging impact. It will create more than 60,000 jobs across the U.S. semiconductor ecosystem. This includes direct jobs at the fabs and supporting roles. Major customers, including Apple, Ford, Medtronic, and Nvidia, have expressed support. They rely on TI’s chips to power their products.
The expansion positions TI to lead in analog and embedded processing. It also reinforces the company’s commitment to U.S. manufacturing. This bold move by Texas Instruments is a major step forward. It will secure a robust domestic chip supply for the future of technology.