Texas Instruments Plans $60 Billion Investment in US Manufacturing, Creating 60,000 Jobs

Texas Instruments plans to invest $60bn (£44.7bn) in domestic production, creating 60,000 jobs and constructing or expanding seven chip-making sites at three locations in Texas and Utah. The move is seen as a boost to US manufacturing and a response to pressure from the Trump administration. The company makes analog or foundational chips used in everyday devices like smartphones, cars, and medical devices.

Texas Instruments (TI) has announced a significant $60 billion investment in domestic semiconductor manufacturing, a move aimed at boosting the U.S. manufacturing landscape and responding to pressure from the Trump administration. The initiative, which includes constructing or expanding seven chip-making sites across three locations in Texas and Utah, is expected to create 60,000 new jobs.

The investment, described as the "largest in foundational semiconductor manufacturing in U.S. history," will focus on producing analog and embedded processing chips for major clients such as Apple, Ford, Medtronic, Nvidia, and SpaceX. These chips are vital for a wide range of everyday devices, including smartphones, cars, and medical equipment.

The investment is part of a broader trend in the semiconductor industry, driven by increasing demand for chips due to the rise of AI adoption and enterprise modernization efforts. According to Gartner, semiconductor revenue globally saw an 18% year-over-year increase in 2024, with the market projected to climb at least another 11% this year to over $700 billion [1].

The Trump administration has been a strong advocate for domestic semiconductor manufacturing, with the CHIPS and Science Act, signed into law by former President Joe Biden, providing $53 billion in support. The administration's efforts, including ongoing tariff negotiations, have encouraged companies like Texas Instruments to invest heavily in U.S.-based chip fabrication.

Texas Instruments' CEO, Haviv Ilan, noted that the investment will help build a domestic supply chain to support semiconductor needs for various industries, including vehicles, smartphones, and data centers. The company has already seen quarterly revenues rise to $4.1 billion during the first three months of 2025, up 11% compared to Q1 2024.

The new facilities will be built at three "mega-sites" in Sherman, Texas, Richardson, Texas, and Lehi, Utah. The Sherman site alone will receive $40 billion of the investment, with the funds allocated to complete construction of the SM1 and SM2 fabs and to begin planning for the SM3 and SM4 fabs. The Lehi and Richardson sites will also see increased production, with the Lehi site's first fab ramping up production and the Richardson site's second fab increasing output.

The investment is expected to have substantial implications for the domestic semiconductor supply chain, with analysts predicting that the fabs will take time to fully realize their potential. However, the expansion is seen as essential for supporting the power management, microcontrollers, and sensors in various electronics manufacturing sectors.

References:
[1] https://www.ciodive.com/news/texas-instruments-domestic-semiconductor-manufacturing-nvidia/751122/
[2] https://www.tomshardware.com/tech-industry/semiconductors/texas-instruments-commits-usd60-billion-to-u-s-semiconductor-manufacturing-includes-planned-expansions-to-texas-utah-fabs
[3] https://www.techtarget.com/searchdatacenter/news/366626281/Texas-Instruments-injects-60B-into-US-chip-manufacturing