Texas Instruments (TI), one of the world’s oldest and most well-known technology companies, announced that it will invest over $60 billion to expand its semiconductor manufacturing in the United States. This decision marks what the company is calling the largest-ever investment in foundational chip production in U.S. history.
TI’s investment will cover the building and expansion of seven chip-making factories, also called fabrication plants or fabs, across Texas and Utah. Some of these plants are already under construction, and the rest will be built based on demand in the coming years. The company said this expansion will help create around 60,000 jobs for Americans.
What Are Foundational Chips and Why Are They Important?
Unlike companies like Nvidia or AMD, which are famous for their high-performance AI chips, Texas Instruments specializes in analog and embedded processing chips. These are called “foundational” semiconductors because they are used in everyday electronics, not just in advanced tech.
These chips are essential for:
- Smartphones
- Cars
- Medical devices
- Satellites
- Home appliances
TI’s customers include big names like Apple, Ford, Nvidia, SpaceX, and Medtronic—companies that rely heavily on consistent and efficient chip supplies.
Why Is Now the Time of This Investment?
This mega-investment is occurring as the U.S government is pressing companies to switch back to making chips in the United States.
This was a big agenda by the former President Donald Trump who resumed office where he pledged to boost homegrown chip manufacturing in America. He has also advised companies against overdependence on foreign chip manufacturers particularly because of geo-political frictions with other nations such as China and Taiwan.
The administration of Trump has also threatened to withdraw elements of the CHIPS and Science Act, a significant piece of legislation enacted in 2022 to aid the production of semiconductors in the U.S, unless even more corporations are willing to prove their significant investments into factories in the U.S in a tangible way.
Consequently, TI and all the other businesses have begun to declare huge spending packages to broaden their business duty in the U.S. which is most probably to meet the anticipations of the government and enjoy the federal monetary assistance.
What’s the CHIPS Act, and How Does TI Benefit?
Development The CHIPS and Science Act was signed into law in 2022, with the stated goal of returning semiconductor manufacturing to the United States via government investment capital, subsidies, and tax breaks. It is aimed at reducing American reliance on other states such as Taiwan that is currently leading in the production of chips worldwide.
The Texas Instruments got approximately 1.61billion under this act to facilitate its factory expansions. Trump and his administration have attacked certain elements of this legislation but have supported the effort at TI, saying this company plan aligns with getting a robust American semiconductor supply system.
Where Will the New TI Facilities Be Located?
TI’s manufacturing expansion involves building new facilities or expanding existing ones at three large sites:
1. Sherman, Texas (Mega-Site)
- Two plants already under construction
- Two more planned based on future market demand
2. Utah
These plants will make 300-millimeter wafers, which are the large silicon discs used to make modern semiconductor chips. These wafers allow the production of more chips at a lower cost, making TI’s chips more competitive in the market.
Industry-Wide Movement Toward U.S. Manufacturing
Texas Instruments is not the only chipmaker making big promises for U.S. production. In recent months:
- Micron said it plans to spend $200 billion on memory chip manufacturing and R&D in the U.S.
- Apple announced $500 billion in AI server production investments in America.
- Nvidia, TSMC, and IBM have also revealed major domestic expansion plans.
- IBM announced a $150 billion investment over the next five years in U.S.-based R&D and production.
These companies seem to be reacting to growing demand for semiconductors, the rise of AI and cloud computing, and political pressure to localize their production.
AI, Data Centers, and Chip Demand
The demand of chips is enormous, and the expansion of artificial intelligence and transformation of enterprises leads to this increase worldwide. Such companies as Google Cloud, Microsoft Azure, and Amazon Web Services (AWS) said that their compute infrastructure is at its limits. They will consequently be investing billions of dollars in new data centers that will require the continuous delivery of high-performance as well as fundamental chips.
Semiconductor industry research firm Gartner believes that last year the industry was up 18 percent and it will continue upward by 11 percent to a market size of more than $700 billion.
Texas Instruments by no means makes chips specifically tailored to AI; but they depend on them in order to operate the systems that make this expansive growth possible everything, in essence, beyond power management to signal processing.
What TI’s CEO Has to Say
CEO Haviv Ilan of Texas Instruments said:
“TI is building dependable, low-cost 300-millimeter capacity at scale to deliver the analog and embedded processing chips that are vital for nearly every type of electronic system.”
This reflects the company’s mission to supply reliable, affordable chips that go into everyday tech, not just niche high-end products.
Conclusion: A Strategic Move for National and Business Growth
Texas Instruments’ decision to invest over $60 billion in U.S. chip manufacturing is a strategic and timely move. It supports America’s long-term goals of reducing dependency on foreign chipmakers and ensuring national security in tech supply chains.
At the same time, it strengthens TI’s position as a global leader in analog semiconductors, allowing it to serve major clients like Apple and Ford even more efficiently.
This massive investment is not just about business—it’s about reshaping the global tech landscape and ensuring that the U.S. plays a leading role in it.
