TI's $60B+ US Chip Fabs Power America's AI Infrastructure

In a landmark move for the American technology sector, Texas Instruments has announced a monumental investment of more than $60 billion to construct and expand seven semiconductor fabrication plants, or "fabs," in the United States.[1][2] This initiative, described as the largest investment in foundational semiconductor manufacturing in U.S. history, will significantly bolster domestic chip production, create tens of thousands of jobs, and fortify the nation's supply chain for critical electronic components.[1][3] The investment is spread across three manufacturing mega-sites in Texas and Utah and is poised to have a profound impact on numerous industries, including the rapidly evolving field of artificial intelligence.[1][4] Once fully operational, these facilities are expected to produce hundreds of millions of U.S.-made chips daily.[1][5]

The core of this massive undertaking is centered in Sherman, Texas, where a potential investment of up to $40 billion is planned for a site that could house four separate fabs.[1][4] Construction is already well underway on the first two Sherman fabs, SM1 and SM2, with initial production from SM1 slated to begin this year.[1][5] The build-out includes plans for two additional fabs, SM3 and SM4, to meet future demand.[1] In addition to the Sherman mega-site, Texas Instruments is ramping up production at its facilities in Richardson, Texas, and Lehi, Utah.[6] The company is increasing output at its RFAB2 facility in Richardson and is in the process of ramping its first 300mm wafer fab in Lehi, LFAB1, while also constructing a second connected fab, LFAB2.[1] This expansion is projected to support the creation of more than 60,000 U.S. jobs, encompassing direct company hires as well as indirect jobs in construction and for suppliers.[1][7]

This strategic expansion is focused on the production of analog and embedded processing chips on 300mm wafers, a move that provides a cost-effective and dependable supply of essential components.[6][1] Unlike the high-profile processors that power AI data centers, these foundational chips are the unsung heroes of the electronics world, vital for nearly every electronic device, from smartphones and electric vehicles to industrial machinery and medical equipment.[1][3] The decision to significantly increase domestic production capacity reflects a broader strategic push to create a more resilient and geopolitically dependable supply chain, a concern that was brought to the forefront by global chip shortages in recent years.[8][3] Leaders from major tech and automotive companies, including Apple, Ford, Medtronic, and NVIDIA, have voiced support for TI's investment, highlighting the importance of a robust domestic supply chain for their own innovation and manufacturing efforts.[1]

The implications of this investment for the artificial intelligence industry are substantial, albeit indirect. While Texas Instruments is not primarily manufacturing the high-performance GPUs that are synonymous with AI model training, its analog and embedded chips are crucial for the broader AI ecosystem.[6][3] These components are essential for power management, sensor interfaces, and data conversion in a vast array of AI-enabled devices and systems.[6] As AI moves from the data center to the "edge" in the form of smarter vehicles, automated factories, and intelligent appliances, the demand for these foundational chips will surge.[9] NVIDIA, a leader in AI hardware, has explicitly partnered with TI, with its CEO Jensen Huang stating a shared goal to "revitalize U.S. manufacturing by building more of the infrastructure for AI factories here in the U.S."[6] The increased production of 300mm wafers, which serve as the base for many complex processors, will also support the broader semiconductor landscape that underpins AI development.[6]

This multi-billion-dollar initiative is reinforced by government support through the CHIPS and Science Act, a legislative effort designed to revitalize the U.S. semiconductor industry.[10][11] Texas Instruments has been awarded up to $1.6 billion in direct funding from the CHIPS Act to support the construction of its new fabs in Texas and Utah.[12][8] The company also anticipates receiving an estimated $6 billion to $8 billion through the U.S. Department of Treasury's Investment Tax Credit for its manufacturing investments.[8][12] This public-private partnership is a key component of a national strategy to reverse the decades-long trend of offshoring chip manufacturing and to solidify America's position in the global technology race.[13][14] By bringing a significant portion of its manufacturing in-house, with a goal of over 95% internal production by 2030, Texas Instruments is not only securing its own supply chain but also contributing to a more resilient and innovative American tech sector.[8] This landmark investment signals a long-term commitment to U.S. manufacturing that will reverberate through the economy and shape the future of technology for decades to come.