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Texas Instruments Announces $60 Billion Investment to Transform U.S. Semiconductor Manufacturing

Prime Highlights

  • Texas Instruments to spend more than $60 billion on U.S. semiconductor manufacturing growth.
  • Seven new buildings to be built in Texas and Utah, U.S. employment to be counted in the thousands.

Key Facts

  • Investment spans four new Sherman, Texas fabs boosting production from 2025 and onwards.
  • Funded by $1.6 billion of CHIPS Act funding and $6–8 billion of tax credits.

Key Background

Texas Instruments (TI), one of the top semiconductor companies, announced that it will spend more than $60 billion to build and install semiconductor manufacturing facilities (fabs) in the US. This will greatly increase local production of important analog and embedded chips, a growth driver for the automotive, industrial, aerospace, and consumer electronics markets.

The bulk of this historic investment will go to TI’s Sherman, Texas mega-site, which will house four new fabs—SM1 through SM4. SM1 is already under construction and expected to begin production in 2025, with the others following in succession. This single site alone could represent up to $40 billion in capital investment over time. Additional expansions will be in current facilities in Richardson, Texas, and Lehi, Utah, where new fabs are underway or under plans.

The project will generate more than 60,000 U.S. jobs, other direct TI employment, construction jobs, and indirect employment in allied industries. The fabs were designed for survivability over the long term, such as water recycling, high-order automation, and 300-mm wafer production—providing higher efficiency in volume.

Strategically, TI’s investment aligns with U.S. national interests to strengthen semiconductor self-sufficiency, reduce dependency on overseas manufacturing, and secure critical supply chains. Backed by $1.6 billion in federal CHIPS and Science Act support, as well as substantial investment tax credits, this expansion not only strengthens TI’s leadership in analog technology but also reinforces America’s global competitiveness in semiconductors.

The investment by Texas Instruments is the largest private-sector investment so far in the manufacture of foundation chips in America, substantiating its 90-year track record of innovation and its vision of empowering the next generation of electronics, ranging from intelligent cars to sophisticated medical implants and artificial intelligence infrastructure.