Texas Instruments announced on Wednesday plans to invest over $60 billion to enhance its manufacturing operations in the U.S. This decision comes as the semiconductor industry faces scrutiny over its supply chains, particularly during the Trump administration.
Back in December, the Biden administration revealed intentions to invest a minimum of $18 billion as part of a larger $52.7 billion initiative focused on chips and science. They also approved $1.61 billion in government incentives for Texas Instruments to support the construction of three new facilities.
According to the company, the $60 billion investment will facilitate the development or expansion of seven chip manufacturing plants across three locations in Texas and Utah. This includes two new sites in Sherman, Texas, which are expected to create around 60,000 jobs. The company has emphasized that this is “the largest investment in basic semiconductor manufacturing in U.S. history.”
Back in August 2024, Texas Instruments had mentioned the potential to build seven facilities, with a projected spending of up to $40 billion across operations in Texas, including Sherman, and in Utah.
The new facilities are part of TI’s strategy to boost its in-house production capabilities while reducing competition with Chinese manufacturers in the analog chip sector.
However, specific timelines for these investments remain unclear, with Texas Instruments estimating around $46 billion for Texas operations and about $15 billion for Utah. Interestingly, the company clarified that its long-term capital expenditure plans have not been altered.
Unlike firms like Nvidia and AMD that focus on AI chips, TI specializes in analog or foundational chips, which are used in everyday products, like smartphones and cars. Their client roster includes big names like Apple, SpaceX, and Ford.
In a recent spending plan, TI indicated it would increase its U.S. investments by an additional $30 billion, bringing its planned total to $200 billion. This followed similar commitments from other players in the semiconductor field, such as Micron.
Some analysts interpret TI’s spending strategy as a gesture toward President Trump, particularly since he had previously warned of potential tariffs on semiconductor imports and had emphasized the importance of U.S. manufacturing in this sector.
Commerce Secretary Howard Luttonick mentioned on Wednesday that Texas Instruments’ investments will significantly enhance the availability of essential semiconductors for everyday use, highlighting a long-term partnership that promises to support chip manufacturing for decades.
Like many firms making similar announcements, TI’s financial commitments also include previously allocated funds for facilities that are either under construction or expanding.
