Texas Instruments to invest $60 billion in U.S. facilities

Texas Instruments, a semiconductor manufacturer based in Dallas, has unveiled plans involving a significant investment exceeding $60 billion in seven fabrication plants located in Texas and Utah. This massive investment is geared towards providing financial support to fabrication sites that are currently in the process of ramping up operations or are already under construction. Additionally, the plan also includes the establishment of two new plants at the company’s megsite in Sherman, Texas.

Texas Instruments has described this commitment as “the largest investment in foundational semiconductor manufacturing in U.S. history” and anticipates that it will result in the creation of over 600,000 new jobs. Texas Instruments CEO Haviv Ilan highlighted the importance of this investment by emphasizing the development of dependable, cost-effective 300mm capacity on a large scale to produce essential analog and embedded processing chips crucial for a wide array of electronic systems. In a news release, Ilan also mentioned notable tech companies like Apple, Ford, Medtronic, Nvidia, and SpaceX as partners of Texas Instruments.

The seven fabrication sites are strategically located within three central megasites in Sherman and Richardson, Texas, as well as in Lehi, Utah. Richardson and Lehi currently have one operating facility each, with a second one in the construction phase at the Lehi site. The primary focus of investment is the Sherman, Texas megasite, which is expected to receive $40 billion. The initial stages of construction are already underway at the first two sites in Sherman, with one site slated to begin operations later this year.

While Texas Instruments did not provide a specific timeline for the two new plants announced recently, the company stated that these facilities would be geared towards meeting future demand. In the first-quarter earnings report, Texas Instruments mentioned anticipating up to $1.6 billion in direct funding from the 2022 U.S. CHIPS and Science Act for the three plants currently being constructed in Sherman and Lehi. Additionally, the company is eligible for a 25% investment tax credit for qualifying investments.

Furthermore, Texas Instruments disclosed that it has already received $260 million in CHIPS proceeds this year. The company also emphasized that its capital expenditures, which are expected to remain at elevated levels, surpassed $1.1 billion in the first quarter. This massive investment by Texas Instruments is aimed at bolstering the semiconductor manufacturing industry in the United States and creating new employment opportunities in the technology sector.