Texas Instruments to Invest Over $60Bn in U.S. Semiconductor Mfg.

Texas Instruments (TI) has announced a landmark investment exceeding $60 billion to build and expand seven 300mm semiconductor fabrication plants across the United States. This initiative marks the largest semiconductor investment in U.S. history, reinforcing the country’s commitment to domestic chip production amid growing global demand and supply chain challenges.

Strategic Expansion Across Texas and Utah

Sherman, Texas: The Largest TI Campus

TI’s Sherman site will serve as the central hub for this expansion, with plans to invest up to $40 billion across four chip fabs—SM1, SM2, SM3, and SM4. Construction of SM1 is nearly complete and expected to begin production this year, while SM2’s shell is finalized with tool installation underway. SM3 and SM4 are in advanced planning stages.

Richardson, Texas: Growing a Trusted Legacy

TI’s Richardson facility, which began operations in 2011 with RFAB1, is expanding through the construction of RFAB2.

These fabs will support the company’s growing analog and embedded processing business, particularly in automotive and industrial applications.

Lehi, Utah: Establishing a New Focal Point

Following TI’s 2021 acquisition of a fab in Lehi, the company is now expanding its presence by building LFAB2, alongside upgrades to LFAB1. These fabs will strengthen TI’s supply of embedded processing chips used in robotics, energy systems, and consumer electronics.

A Historic Investment in U.S. Manufacturing

With this investment, TI is setting a new standard for semiconductor production in America. The $60 billion plan is expected to create over 60,000 direct and indirect jobs, including construction, manufacturing, engineering, and support roles.

TI’s strategy is built on producing 300mm wafers—a format that allows for greater chip output at lower costs.

Once all fabs are operational, TI will be able to produce hundreds of millions of analog and embedded chips daily, critical for sectors including automotive, aerospace, defense, healthcare, and consumer tech.

Executive Leadership Comments

Haviv Ilan, President and CEO, Texas Instruments

“This investment positions TI to deliver affordable, reliable analog and embedded chips at scale for decades to come. It also strengthens our internal manufacturing strategy and supports our long-term ambitions for growth.”

“By building 300mm capacity across these key sites, we’re ensuring supply chain resilience and meeting the needs of the most essential electronics markets.”

Support From U.S. Industry Leaders

Several high-profile technology and manufacturing companies expressed strong support for TI’s domestic expansion strategy:

Tim Cook, CEO, Apple

“Texas Instruments plays a crucial role in Apple’s U.S. manufacturing goals. We’re proud to work with TI as they continue to invest in American innovation and chipmaking.”

Jim Farley, CEO, Ford Motor Company

“Semiconductors are the backbone of modern vehicles. We commend TI for investing in domestic production that will benefit the automotive industry and ensure more stable supply chains.”

Geoff Martha, CEO, Medtronic

“Medical technology depends on a stable, high-quality chip supply. TI has been instrumental in helping Medtronic deliver advanced therapies without delays.”

Jensen Huang, CEO, NVIDIA

“Texas Instruments and NVIDIA share a vision of a resilient U.S. manufacturing base. TI’s investment in domestic chip fabrication is vital for the future of AI, autonomous systems, and industrial computing.”

Gwynne Shotwell, President and COO, SpaceX

“Semiconductors are essential to our missions. TI’s U.S.-based manufacturing ensures critical supply security for our space technologies.”

Why TI Is Investing Now

Texas Instruments has long pursued a vertically integrated manufacturing model, owning and operating most of its production lines. This approach allows TI to control costs, quality, and supply more effectively than relying on third-party foundries.

The current expansion is being driven by:

• Surging demand for analog and embedded chips in AI, EVs, industrial automation, aerospace, and healthcare

• National security and supply chain resilience, particularly amid U.S.–China tensions

• Economic incentives under the CHIPS and Science Act, including tax credits and earlier grant support

Though this latest expansion is not funded by new CHIPS Act grants, TI has benefited from federal R&D and infrastructure incentives that align with the Biden administration’s tech independence strategy.

Timeline and Financial Outlook

TI is about 70% through the planned capital expenditures for these fab projects. The Sherman SM1 fab will begin operations in 2025, with full capacity ramping across sites through the decade. RFAB2 and LFAB2 are expected to begin tool installation in 2025 and production by 2026.

While the capital investment is significant, analysts believe TI’s long-term cost advantage from 300mm wafers and in-house manufacturing will drive sustained revenue growth. The company continues to project robust margins in analog and embedded segments.

U.S. Semiconductor Strategy: A National Imperative

Texas Instruments’ investment comes as part of a broader trend of semiconductor reshoring. Major chipmakers including Intel, TSMC, Micron, and GlobalFoundries have all announced multi-billion-dollar U.S. projects in response to global supply chain disruptions and increased geopolitical instability.

TI’s commitment strengthens America’s ability to produce essential electronics domestically, reducing reliance on overseas foundries and enhancing national economic and defense capabilities.

The Road Ahead

TI’s mega-expansion underscores a critical shift toward U.S. semiconductor sovereignty. With rising global demand, strategic federal support, and a robust domestic market, TI is betting on the long-term payoff of building the world’s most advanced analog chip ecosystem on American soil.

As these fabs come online, TI is poised to meet the needs of the next wave of innovation—from smart vehicles and factories to AI, space tech, and life-saving medical systems.