Texas Instruments plans to invest more than $60 billion to manufacture billions of foundational semiconductors in the U.S.
- Historic $60 billion investment in U.S. semiconductor manufacturing capacity
- Creation of over 60,000 new U.S. jobs across three manufacturing mega-sites
- Strategic partnerships with major tech leaders: Apple, Ford, Medtronic, NVIDIA, and SpaceX
- First new fab (SM1) in Sherman beginning production just three years after groundbreaking
- Expansion strengthens domestic semiconductor supply chain and manufacturing capabilities
- Significant capital expenditure requirement of $60+ billion could impact short-term financial flexibility
- Extended timeline for full operational capacity across all seven fabs could delay return on investment
- Heavy concentration of manufacturing facilities in Texas poses potential geographic risk
Insights
TI's historic $60B U.S. manufacturing investment secures domestic semiconductor supply and strengthens its competitive position with key customers.
Texas Instruments' announcement represents a transformative $60+ billion investment in U.S. semiconductor manufacturing across seven fabs in Texas and Utah. This is not just significant for TI but marks the largest investment in foundational semiconductor manufacturing in U.S. history. The scale is unprecedented, with plans to support over 60,000 new jobs and produce hundreds of millions of chips daily.
The strategy brilliantly positions TI to capitalize on increasing domestic semiconductor demand while aligning with national security interests in reshoring critical technology. By expanding its 300mm manufacturing capacity at three mega-sites, TI achieves several competitive advantages: economies of scale, supply chain resilience, and manufacturing cost leadership.
What's particularly strategic is how TI has secured partnerships with premier American technology leaders � Apple, Ford, Medtronic, NVIDIA, and SpaceX. These relationships span diverse high-growth sectors: consumer electronics, automotive, medical technology, AI, and aerospace. This diversification provides both demand stability and growth opportunities across economic cycles.
The phased implementation approach is prudent � with Sherman's SM1 beginning production this year while construction continues on other facilities. This enables TI to gradually increase capacity while managing capital deployment efficiently. The vertical integration of manufacturing also grants TI greater control over production quality and costs compared to fabless competitors.
This investment cements TI's position as America's largest foundational semiconductor manufacturer, focusing on analog and embedded processing chips essential to nearly all electronic devices. As these components become increasingly critical for AI, electric vehicles, and IoT applications, TI is securing its relevance in the next technological era.
TI's $60B manufacturing investment significantly strengthens long-term competitive position, secures key customer relationships, and aligns with national priorities.
Texas Instruments' $60+ billion investment plan represents a bold strategic bet on reshoring semiconductor manufacturing that will fundamentally transform the company's competitive position. While the capital intensity is substantial, the strategic benefits are compelling. This move secures TI's manufacturing leadership in analog and embedded processing chips � technologies that, while less headline-grabbing than cutting-edge logic chips, are essential components in virtually all electronic devices.
The customer partnerships announced with Apple, Ford, Medtronic, NVIDIA and SpaceX are particularly significant. These relationships span the most important growth sectors in technology � consumer electronics, automotive, medical technology, artificial intelligence, and aerospace. By embedding itself deeper into these companies' supply chains, TI is positioning itself as an indispensable partner for America's most innovative companies.
From a capital allocation perspective, this investment demonstrates management's confidence in long-term demand growth for foundational semiconductors. The phased build-out across multiple sites provides flexibility to adjust timing based on market conditions. With 300mm wafer manufacturing, TI will achieve superior cost structures and manufacturing efficiencies compared to competitors with older 200mm facilities.
The strategic timing is noteworthy, aligning with both the CHIPS Act incentives and broader national security priorities to secure domestic semiconductor supply chains. This positions TI to potentially benefit from government subsidies while simultaneously earning goodwill as a champion of American manufacturing renaissance.
While the near-term impact on financial metrics will be capital-intensive, the long-term implications for revenue stability, margin potential, and competitive positioning are decidedly positive. This investment secures TI's manufacturing leadership for decades to come.
Leading
NEWS HIGHLIGHTS:
- More than
investment includes seven$60 billion U.S. semiconductor fabs across three manufacturing mega-sites inTexas andUtah supporting more than 60,000 newU.S. jobs - Largest investment in foundational semiconductor manufacturing in
U.S. history, building on TI's almost-100-year legacy - TI's largest mega-site in
Sherman, Texas includes investment of up to for four fabs: SM1 and SM2 � already underway � and two additional fabs, SM3 and SM4$40 billion dollars - Leverages TI's strengths as a global technology and manufacturing leader to advance critical innovations from vehicles to smartphones to data centers
"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
"For nearly a century, Texas Instruments has been a bedrock American company driving innovation in technology and manufacturing," said
Unleashing what's next in American innovation
Today, TI is the largest foundational semiconductor manufacturer in the
Igniting intelligence with Apple
"Texas Instruments' American-made chips help bring Apple products to life, and together, we'll continue to create opportunity, drive innovation, and invest in the future of advanced manufacturing across the
Fueling the future with Ford
Ford and TI are working to strengthen American manufacturing, combining Ford's automotive expertise with TI's semiconductor technology to help drive innovation and secure a robust, domestic supply chain for the future of mobility. "At Ford,
Connecting patient care with Medtronic
Medtronic and TI are partnering to improve lives when it matters most. "At Medtronic, our life-saving medical technologies rely on semiconductors to deliver precision, performance, and innovation at scale," said Geoff Martha, Medtronic chairman and CEO. "Texas Instruments has been a vital partner � especially during the global chip shortages � helping us maintain supply continuity and accelerate the development of breakthrough therapies. We're proud to leverage TI's
Advancing AI with NVIDIA
NVIDIA is partnering with TI to unleash the next generation of artificial intelligence architectures. "NVIDIA and TI share the goal to revitalize
Securing high-speed satellite internet with SpaceX
SpaceX is increasingly leveraging TI's high-speed process technology to connect its Starlink satellite internet service with TI's latest 300mm SiGe technology manufactured in
Backed by the strength of TI's
TI is a driving force behind the return and expansion of semiconductor manufacturing in the U.S. The company's more than
Sherman , Texas: SM1, TI's first new fab inSherman will begin initial production this year, just three years after breaking ground. Construction is also complete on the exterior shell of SM2, TI's second new fab inSherman . Incremental investment plans include two additional fabs, SM3 and SM4, to support future demand.Richardson, Texas : TI's second fab inRichardson , RFAB2, continues to ramp to full production and builds on the company's legacy of introducing the world's first 300mm analog fab, RFAB1, in 2011.Lehi, Utah : TI is ramping LFAB1, the company's first 300mm wafer fab inLehi . Construction is also well underway on LFAB2, TI's secondLehi fab that will connect to LFAB1.
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About Texas Instruments
Texas Instruments Incorporated (Nasdaq: TXN) is a global semiconductor company that designs, manufactures, and sells analog and embedded processing chips for markets such as industrial, automotive, personal electronics, communications equipment and enterprise systems. At our core, we have a passion to create a better world by making electronics more affordable through semiconductors. This passion is alive today as each generation of innovation builds upon the last to make our technology more reliable, more affordable and lower power, making it possible for semiconductors to go into electronics everywhere. Learn more at TI.com.
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