Texas Instruments plans to invest more than $60 billion to manufacture billions of foundational semiconductors in the U.S.

Rhea-AI Summary

Texas Instruments (TXN) announced plans to invest over $60 billion in seven U.S. semiconductor fabs, marking the largest investment in foundational semiconductor manufacturing in U.S. history. The expansion includes three manufacturing mega-sites across Texas and Utah, supporting over 60,000 new U.S. jobs. The Sherman, Texas mega-site will receive up to $40 billion for four fabs (SM1-SM4). TI has strengthened partnerships with major U.S. companies including Apple, Ford, Medtronic, NVIDIA, and SpaceX to advance innovations in various sectors. The company's manufacturing expansion includes facilities in Sherman, Richardson (Texas), and Lehi (Utah), with SM1 beginning production in 2025. As the largest foundational semiconductor manufacturer in the U.S., TI will produce analog and embedded processing chips crucial for smartphones, vehicles, data centers, and various electronic devices.

Positive

• 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

Negative

• 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

News Market Reaction – TXN

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Leading U.S. companies Apple, Ford, Medtronic, NVIDIA and SpaceX strengthen partnerships with TI to unleash the next era of American innovation

NEWS HIGHLIGHTS:

• More than $60 billion investment includes seven U.S. semiconductor fabs across three manufacturing mega-sites in Texas and Utah supporting more than 60,000 new U.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 $40 billion dollars for four fabs: SM1 and SM2 – already underway – and two additional fabs, SM3 and SM4
• Leverages TI's strengths as a global technology and manufacturing leader to advance critical innovations from vehicles to smartphones to data centers

DALLAS, June 18, 2025 /PRNewswire/ -- Texas Instruments (TI) (Nasdaq: TXN) today announced its plans to invest more than $60 billion across seven U.S. semiconductor fabs, making this the largest investment in foundational semiconductor manufacturing in U.S. history. Working with the Trump administration and building on the company's nearly 100-year legacy, TI is expanding its U.S. manufacturing capacity to supply the growing need for semiconductors that will advance critical innovations from vehicles to smartphones to data centers. Combined, TI's new manufacturing mega-sites in Texas and Utah will support more than 60,000 U.S. jobs.

"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 U.S. companies such as Apple, Ford, Medtronic, NVIDIA and SpaceX rely on TI's world-class technology and manufacturing expertise, and we are honored to work alongside them and the U.S. government to unleash what's next in American innovation."

"For nearly a century, Texas Instruments has been a bedrock American company driving innovation in technology and manufacturing," said U.S. Secretary of Commerce, Howard Lutnick. "President Trump has made it a priority to increase semiconductor manufacturing in America – including these foundational semiconductors that go into the electronics that people use every day. Our partnership with TI will support U.S. chip manufacturing for decades to come."

Unleashing what's next in American innovation

Today, TI is the largest foundational semiconductor manufacturer in the U.S., producing analog and embedded processing chips that are critical for smartphones, vehicles, data centers, satellites and nearly every other electronic device. In order to meet the steadily growing demand for these essential chips, TI is building on its legacy of technology leadership and expanding its U.S. manufacturing presence to help its customers pioneer the next wave of technological breakthroughs.

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 U.S.," said Apple's CEO Tim Cook.

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, 80% of the vehicles we sell in the U.S. are assembled in the U.S., and we are proud to stand with technology leaders like TI that continue to invest in manufacturing in the U.S.," said Jim Farley, President and CEO of Ford Motor Company.

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 U.S.-manufactured semiconductors as we work to transform healthcare and improve outcomes for patients around the world."

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 U.S. manufacturing by building more of the infrastructure for AI factories here in the U.S.," said Jensen Huang, founder and CEO of NVIDIA. "We look forward to continuing our collaboration with TI by developing products for advanced AI infrastructure."

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 Sherman, Texas. "Our fundamental mission is to revolutionize global connectivity and eliminate the digital divide. Core to this mission is constantly pushing the boundaries of what is possible," said Gwynne Shotwell, president and COO of SpaceX. "SpaceX is manufacturing tens of thousands of Starlink kits a day – all right here in the U.S. – and we are making huge investments in PCB manufacturing and silicon packaging to expand even further. TI's U.S.-made semiconductors are crucial for securing a U.S. supply chain for our products, and their advanced silicon manufacturing capabilities provide the performance and reliability needed to help us meet the growing demand for high-speed internet all around the world."

Backed by the strength of TI's U.S. manufacturing presence

TI is a driving force behind the return and expansion of semiconductor manufacturing in the U.S. The company's more than $60 billion investment in U.S. manufacturing includes building and ramping seven, large-scale, connected fabs. Combined, these fabs across three manufacturing mega-sites in Texas and Utah will manufacture hundreds of millions of U.S.-made chips daily that will ignite a bold new chapter in American innovation.

• Sherman, Texas: SM1, TI's first new fab in Sherman 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 in Sherman. Incremental investment plans include two additional fabs, SM3 and SM4, to support future demand.
• Richardson, Texas: TI's second fab in Richardson, 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 in Lehi. Construction is also well underway on LFAB2, TI's second Lehi fab that will connect to LFAB1.

Learn more

• Press kit (includes images, video b-roll and fact sheet)
• Additional press kits (Sherman, Texas, Lehi, Utah, and Richardson, Texas)

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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SOURCE Texas Instruments

FAQ

What is the size of Texas Instruments' (TXN) new manufacturing investment?

Texas Instruments is investing more than $60 billion across seven U.S. semiconductor fabs, representing the largest investment in foundational semiconductor manufacturing in U.S. history.

How many jobs will Texas Instruments' new semiconductor fabs create?

The new manufacturing mega-sites in Texas and Utah will support more than 60,000 new U.S. jobs.

Where are TXN's new semiconductor manufacturing facilities located?

The manufacturing facilities are located across three mega-sites: Sherman and Richardson in Texas, and Lehi in Utah.

Which major companies are partnering with Texas Instruments for semiconductor supply?

Texas Instruments has partnerships with Apple, Ford, Medtronic, NVIDIA, and SpaceX for semiconductor supply and innovation.

When will TXN's first new fab (SM1) in Sherman begin production?

SM1, the first new fab in Sherman, Texas, will begin initial production in 2025, three years after breaking ground.