Texas Instruments (TI) has announced a historic $60 billion plan to dramatically expand its semiconductor manufacturing footprint in the United States. Covering seven fabrication plants across Texas and Utah, the initiative includes both ongoing construction and new facilities, with a goal of producing hundreds of millions of chips daily.
The company projects the creation of more than 60,000 jobs, making this the largest foundational semiconductor investment in U.S. history.
This announcement aligns with heightened efforts by the Trump administration to onshore critical tech infrastructure. As analog chips become increasingly vital in everyday electronics and industrial systems, TI’s investment aims to bolster domestic chipmaking capabilities and reduce reliance on foreign suppliers, particularly in light of competitive pressure from Chinese firms.
Why It Matters: TI’s expansion reflects a shift in national priorities around tech independence and supply chain security. The investment strengthens America’s position in the global semiconductor market while addressing concerns over foreign dependence and industrial resilience.
- $60 Billion Investment Scope: TI’s commitment spans the construction and expansion of seven semiconductor fabrication facilities across Texas and Utah. This includes two new factories planned at its Sherman, Texas site and the completion of three plants already underway. The focus of these facilities will be on producing 300mm wafers for analog and embedded chips. This makes TI’s plan the largest single investment in foundational chip manufacturing in the country’s history.
- Strategic Manufacturing Shift: While many chipmakers have leaned heavily into outsourcing to reduce costs, TI is doubling down on in-house production. This pivot aims to enhance operational control, reduce vulnerability to overseas disruptions, and secure long-term cost advantages. Analog chips, which TI specializes in, are a growing area of focus for Chinese competitors who are constrained by export controls in the high-end digital chip space.
- Political Context and Incentives: TI’s announcement comes amid a broader push by the Trump administration to reindustrialize America’s tech infrastructure. This includes threatening tariffs on imported semiconductors and initiating new reviews of foreign chip equipment dependencies. The company has already secured $1.61 billion in funding under the CHIPS and Science Act passed during the Biden administration and now stands to benefit from a suite of tax credits and policy incentives under President Trump.
- Economic and Labor Impact: The expansion is expected to generate over 60,000 jobs across engineering, construction, and plant operations. Beyond direct employment, TI’s efforts will significantly boost regional economies in Texas and Utah. The new facilities will supply analog and embedded chips to major American companies such as Apple, Ford, SpaceX, and Medtronic, helping fortify the national supply chain for a wide array of essential technologies.
- Investor Reassurance: TI’s aggressive capital outlay has sparked concern among some investors focused on short-term returns. The company’s leadership, however, has emphasized that the current spending wave is near its end, with 70% of the elevated capital expenditures already completed. CEO Haviv Ilan has reassured shareholders that the company remains committed to returning value through dividends and stock buybacks once the expansion phase concludes.
Texas Instruments Touts Plans to Invest $60 Billion in the US – Bloomberg
Texas Instruments Plans $60 Billion U.S. Investment Amid Trump’s Onshoring Push – CNBC
