Washington — Texas Instruments said on Wednesday it will spend more than $60bn to expand its US manufacturing footprint, the latest chipmaker to ramp up domestic production amid pressure from the Trump administration to reshore the semiconductor supply chain.
In December, the Biden administration finalised a $1.61bn government subsidy for Texas Instruments to support construction of three new facilities after the company announced plans to invest at least $18bn under the $52.7bn Chips and Science bill.
The company said on Wednesday the $60bn will be used to build or expand seven chip-making facilities at three sites in Texas and Utah, including two new facilities in Sherman, Texas, and will create 60,000 jobs, calling it the “largest investment in foundational semiconductor manufacturing in US history.”
Competition
In August 2024, the company said it could build seven chip-building facilities and spend up to $40bn on its Sherman, Texas operations and $21bn on Utah and other Texas plants.
Texas Instruments has been building facilities in Texas and one in Utah as part of efforts to boost in-house manufacturing and stave off rising competition from Chinese analogue chipmakers.
The company did not give a precise timeline for the investment, which includes up to $46bn in Texas and about $15bn in Utah. Texas Instruments said its long-term Capex plan is unchanged.
Unlike AI chip firms Nvidia and AMD, TI makes analogue or foundational chips used in everyday devices such as smartphones, cars and medical devices, giving it a large client base that includes Apple, SpaceX and Ford Motor.
The spending plan follows similar announcements from others in the semiconductor industry, including Micron, which said last week that it will expand its US investment by $30bn, taking its planned spending to $200bn.
Analysts have said they see the spending plans as overtures to US President Donald Trump, who has repeatedly threatened to kill the $52.7bn 2022 Chips and Science Act and warned of potential new tariffs on semiconductor imports.
Boost
Commerce secretary Howard Lutnick said on Wednesday the Texas Instruments investment will boost “foundational semiconductors that go into the electronics that people use every day. Our partnership with TI will support US chip manufacturing for decades to come.”
Like other companies unveiling such spending commitments, TI's announcement includes funds already allocated to facilities that are either under construction or ramping up.
Reuters
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