TI To Invest $60 Billion In U.S. Fabs
TI plans to invest more than $60 billion across seven semiconductor fabs in the U.S.
By Mark LaPedus
Texas Instruments (TI) plans to invest more than $60 billion across seven semiconductor fabs in the United States.
Working with the Trump administration, TI’s investments include seven 300mm fabs across three manufacturing mega-sites in Texas and Utah. Some of these fabs have already been announced and are in production. Other fabs are still on the drawing board with no timetable.
Founded in 1930, TI has been involved in the semiconductor industry for decades. Today, TI’s portfolio covers over 80,000 chip products. The company’s two biggest chip segments are analog and embedded. In fact, the Dallas-based company is the world’s largest supplier of analog chips.
Analog and embedded represent more than 90% of TI’s sales. Applications include automotive, industrial and other markets. TI also sells DLPs, calculators and other products.
TI also owns and operates fabs in China, Germany, Japan and the U.S. In those fabs, the company produces chips at more mature nodes.
In 2024, TI manufactured 90% of its total wafers internally. The company produced 60% of its 300mm wafers internally. The remaining percentage was outsourced to foundry vendors. Some 70% of TI’s chip-assembly and test work is handled internally. The remaining portion is handled by outside companies.
TI’s goal is to control its entire supply chain. At some point in the future, the company wants to produce more than 90% of all wafers internally. It also wants to do 90% of its assembly and test work internally.
To reach those goals, TI is making investments in various U.S.-based 300mm fabs, including:
Richardson, Texas
*TI’s second fab in Richardson, RFAB2, moved into production in 2022. TI plans to ramp up more capacity this year. RFAB2 produces chips at the 180nm to 130nm nodes.
Sherman, Texas
*SM1, TI’s first new fab in Sherman, will begin initial production this year. SM1 is expected to produce chips at the 130nm to 65nm nodes.
*Construction is also complete on the exterior shell of SM2, TI’s second new fab in Sherman.
*Two additional fabs, SM3 and SM4, are on the drawing board in Sherman. TI has not announced when SM2, SM3 or SM4 will move into production.
Lehi, Utah
*TI is ramping LFAB1, the company’s first 300mm wafer fab in Lehi. That fab, which was acquired from Micron, is producing chips at the 65nm to 28nm nodes.
*Construction is also underway on LFAB2, TI’s second Lehi fab that will connect to LFAB1. TI has not announced when that fab will move into production.
TI also has four fabs outside the U.S., including two in Japan, one in China, and one in Germany. “These fabs can run most parts made in the U.S. They are lower efficiency (200mm) vs. the 300mm wafer fabs, but can be part of solution to avoid tariffs,” said John Vinh, an analyst with KeyBanc Capital Markets, in a research note.
In 2024, TI’s capital expenditures were $5 billion. The company is expecting its capital spending budget to reach $5 billion in 2025.
In the first quarter of 2025, TI’s sales were $4.1 billion, an increase of 2% sequentially and an increase of 11% year-over-year. Net income in the quarter was $1.2 billion, or $1.28 per share. All of TI’s markets grew sequentially with the exception of a seasonal decline in personal electronics.