Texas Instruments Inc (NASDAQ:TXN) has announced plans to invest more than $60 billion to expand semiconductor manufacturing in the US.
The investment will fund the construction and expansion of seven semiconductor fabrication plants (fabs) across three major sites in Texas and Utah, including a mega-site in Sherman, Texas, which alone will receive up to $40 billion for four fabs (SM1 to SM4), the company said on Wednesday.
The rollout is phased, with the first fab at Sherman (SM1) scheduled to begin production in 2025, and other fabs under construction or ramping up production at Richardson, Texas, and Lehi, Utah.
The new facilities are expected to produce hundreds of millions of chips daily and will support more than 60,000 jobs.
The expansion aims to meet growing demand for analog and embedded processing chips, critical components used in a wide range of applications such as automotive systems, smartphones, industrial equipment, data centers, and emerging technologies like AI and electric vehicles.
"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," Texas Instruments CEO Haviv Ilan said in a statement.
"Leading US 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 US government to unleash what's next in American innovation."
The investment aligns with the Trump administration’s efforts to promote domestic semiconductor production and technological sovereignty, responding to national security and supply chain concerns.
"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,” US Secretary of Commerce Howard Lutnick said. “Our partnership with TI will support US chip manufacturing for decades to come."
Shares of Texas Instruments traded 0.9% higher at about $199 late morning on Wednesday.