Texas Instruments Bets Big: $60B Semiconductor Mega-Factories Coming to Texas

Silicon Prairie gets a turbocharged upgrade as Texas Instruments goes all-in on domestic chip production.

The chipmaker's $60 billion play

In a move that could reshape North America's semiconductor landscape, Texas Instruments just committed what amounts to a small nation's GDP to build next-gen fabrication plants in its home state. That's right—$60 billion worth of silicon sovereignty.

Wall Street's predictable reaction

Analysts are already salivating over the potential supply chain implications (and let's be honest—those sweet, sweet tax incentives). Because nothing gets institutional investors harder than predictable subsidies and constrained supply.

The timing couldn't be more strategic—or more cynical. As global chip shortages continue to throttle industries from autos to appliances, TI's massive bet positions them as America's semiconductor savior... with profit margins that would make a crypto miner blush.

Texas Instruments builds on its legacy of technology leadership 

.@TXInstruments continues to make history right here in North Texas. With the largest foundational semiconductor manufacturing investment in U.S. history and DEEP partnerships with major companies, Texas Instruments is helping power the next generation of innovation from the… https://t.co/u2MxuKSsSk

— Dallas Regional Chamber (@DRC) June 18, 2025

U.S. Secretary of Commerce Howard Lutnick acknowledged that Texas Instruments has been a bedrock American company driving innovation in technology and manufacturing for nearly a century. He also noted that TRUMP prioritized increasing semiconductor manufacturing in the U.S., including foundational semiconductors that go into the electronics people use every day.

According to TI, its more than $60 billion investment in U.S. manufacturing includes building and ramping seven large-scale, connected fabs. The firm said the fabs across three manufacturing mega-sites in Texas and Utah will manufacture hundreds of millions of U.S.-made chips daily. 

The first fab SM1 will be built in Sherman, Texas, and will begin initial production this year, just three years after breaking ground. SM2 is also complete on the exterior shell, as TI said it plans to include two additional fabs, SM3 and SM4, to support future demand.

Texas Instrument said its second fab in Richardson, RFAB2, continues to build on its legacy of introducing the world’s first 300mm analog fab, RFAB1, in 2011. The company is also ramping up LFAB1, its first 300mm wafer fab in Lehi, Utah.

The chipmaker joins several other U.S. tech companies that have announced hundreds of billions of dollars in domestic investments from the Trump administration’s efforts to produce more semiconductors in the country. Nvidia revealed in April its plan to build AI servers worth as much as $500 billion in the U.S. over the next four years with help from partners such as Taiwan’s TSMC.

Leading tech companies support TI’s U.S. expansion plans 

The firm’s CEO, Havin Ilan, said TI is building dependable, low-cost 300mm capacity at scale to deliver the analog and embedded processing chips vital for nearly every electronic system. Texas Instruments also revealed that SpaceX is leveraging its high-speed process technology to connect its Starlink satellite internet service with TI’s latest 300mm SiGe technology manufactured in Sherman, Texas.

“Leading U.S. companies such as Apple, Ford, Medtronic, NVIDIA, and SpaceX rely on TI’s world-class technology and manufacturing expertise, and we are honored to work alongside them and the U.S. government to unleash what’s next in American innovation.”

–Havin Ilan, CEO at Texas Instruments.

Gwynne Shotwell, president and COO of SpaceX, said the company’s mission is to revolutionize global connectivity and eliminate the digital divide. He also revealed that the firm manufactures tens of thousands of Starlink kits daily in the U.S. They’re investing in PCB manufacturing and silicon packaging to expand further. 

Shotwell believes that TI’s U.S.-made semiconductors are crucial for securing a U.S. supply chain for their products. He also added that TI’s advanced silicon manufacturing capabilities provide the performance and reliability needed to help SpaceX meet the growing demand for high-speed internet all around the world.

Apple’s CEO, Tim Cook, said Texas Instruments’ American-made chips help bring Apple products to life. He also added that together, they’ll continue to create opportunity, drive innovation, and invest in the future of advanced manufacturing across the U.S.

Geoff Martha, Medtronic chairman and CEO, revealed that Medtronic and TI are partnering to improve lives when it matters most. The firm argued that its life-saving medical technologies rely on semiconductors to deliver precision, performance, and innovation at scale. 

Jensen Huang, founder and CEO of Nvidia, acknowledged that the firm was partnering with TI because they shared the goal to revitalize U.S. manufacturing by building more of the infrastructure for AI factories in the U.S. Huang said he’s looking forward to continuing Nvidia’s collaboration with TI by developing products for advanced AI infrastructure.

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