TI's $60 Billion Investment in US Chip Manufacturing

2025-06-19

On June 18, 2025, Texas Instruments (TI) announced an ambitious investment plan to build seven chip manufacturing plants in Texas and Utah, USA, with an investment exceeding $60 billion. This initiative is hailed as the largest investment in the US foundational semiconductor manufacturing industry to date. The investment not only reflects TI's emphasis on US domestic manufacturing capabilities but also demonstrates its strategic layout the in global semiconductor market.

TI's investment plan has received strong support from the US government. In December 2024, the Biden administration approved a $1.61 billion subsidy for TI to support the construction of three new facilities under the CHIPS and Science Act. The subsidy aims to encourage companies to invest in semiconductor manufacturing in the US, reduce dependence on other countries, and enhance the US's competitiveness in the global semiconductor industry.

Investment Details and Factory Layout

TI plans to build or expand seven chip manufacturing plants at three locations in Texas and Utah, specifically:

● Sherman, Texas: Two new factories (SM1 and SM2) are being constructed. SM1 is set to begin initial production in 2025, and the building for SM2 is also complete. Additionally, plans are underway to build two more factories (SM3 and SM4) to meet future demand.

● Richardson, Texas: The RFAB2 factory is gradually scaling up to full production, following the tradition of RFAB1, the world's first 300mm analog wafer fab launched in 2011.

● Lehi, Utah: The LFAB1 factory is being expanded, and construction of LFAB2 is progressing smoothly, connected to LFAB1.

These factories will focus on producing analog and embedded processing chips, which are widely used in key areas such as automotive, smartphones, and data centers. It is estimated that these factories will produce hundreds of millions of chips daily and create over 60,000 jobs.

Technological and Market Impact

TI's $60 Billion Investment in US Chip Manufacturing

The core of TI's large-scale investment is the construction of 300mm (12-inch) wafer production lines. This large-scale production method can significantly reduce the unit cost of chips and improve production efficiency. As a global leader in the analog chip market, TI's products are widely used in industrial, automotive, consumer electronics, and communication equipment. Through this investment, TI will further consolidate its leading position in the analog chip field and provide a more reliable chip supply for US-based companies.

Additionally, TI's investment plan reflects the trend of adjusting the global semiconductor supply chain. In recent years, the fragility of the global semiconductor supply chain has been exposed by multiple shocks such as the pandemic and geopolitical conflicts. Countries have increasingly regarded semiconductor manufacturing as a core element of national security and economic competitiveness. The US government has prioritized enhancing domestic semiconductor manufacturing capabilities, and TI's plan is a proactive response to this policy.

Industrial Ecosystem and Collaboration

TI's chips are widely used in the equipment of leading US companies such as Apple, Ford, Medtronic, NVIDIA, and SpaceX. These companies rely on TI's world-class technology and manufacturing expertise. The investment plan will further strengthen TI's collaboration with these companies and drive the development of the US high-tech industry ecosystem.

TI's President and CEO, Haviv Ilan, said, "TI is building reliable, low-cost, large-scale 300mm wafer capacity to provide analog and embedded processing chips that are crucial to virtually all electronic systems. We are honored to work with these companies and the US government to jointly advance the future of US innovation."

Future Outlook

TI's $60 billion investment plan is not only a boost to US domestic manufacturing capabilities but also a significant influence on the global semiconductor industry landscape. By large-scale construction of 300mm wafer capacity, TI will further consolidate its leading position in the analog chip field and provide a more reliable chip supply for the US high-tech industry.

Additionally, this investment plan will create a large number of jobs in the US and drive the development of related industries. In the future, as these factories are gradually built and put into production, TI will be better able to meet the growing global demand for semiconductor chips, further promoting technological innovation and industrial development.

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