Texas Instruments Plans $60B Investment In U.S. Facilities
Dallas-based semiconductor manufacturer Texas Instruments plans to invest more than $60B in seven fabrication plants in Texas and Utah, it announced Wednesday.
The investment is poised to funnel funding into fabrication sites already ramping up or under construction, as well as two previously unannounced plants at its megasite in Sherman, Texas.
TI touted the commitment as “the largest investment in foundational semiconductor manufacturing in U.S. history” and said it expects it to create more than 600,000 new 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,” Texas Instruments CEO Haviv Ilan said in a news release.
Ilan named tech companies Apple, Ford, Medtronic, Nvidia and SpaceX as TI's partners.
All seven fabrication sites are planned to be housed within three megasites: in Sherman and Richardson, Texas, and in Lehi, Utah.
Richardson and Lehi each have one facility in the process of ramping up production. Construction is underway on a second project in Lehi.
The largest megasite is in Sherman, Texas, which is slated to receive $40B. The first two sites there are under construction, with one expected to deliver this year.
TI didn't announce a timeline for the two new projects announced Wednesday, simply saying they would “support future demand.”
The company said in its first-quarter earnings report that it expects to receive up to $1.6B in direct funding from the 2022 U.S. CHIPS and Science Act for the three plants under construction in Sherman and Lehi, as well as a 25% investment tax credit for qualifying investments.
TI said it has received $260M in CHIPS proceeds this year. Its capital expenditures, which TI said “are expected to remain at elevated levels,” totaled more than $1.1B in the first quarter.
