Texas Instruments to Build New Semiconductor Wafer Factory in Utah, Strengthening Position as Global Manufacturing Center

Texas Instruments (TI) recently announced the construction of a new 12-inch semiconductor wafer manufacturing facility in Lehi, Utah. The new facility will be located next to the company's existing 12-inch semiconductor wafer facility, LFAB, and once completed, the two Lehi wafer facilities will be merged into one.

According to Haviv Ilan, TI's Executive Vice President and Chief Operating Officer and next CEO, the new wafer facility is part of the company's long-term plan to build the capacity needed by customers for the next several decades. The decision to build a second wafer facility in Lehi represents TI's commitment to Utah and demonstrates that the talented team in the area will lay the groundwork for another important chapter in TI's future.

With semiconductors growing in the electronics industry as expected, especially in the industrial and automotive sectors, and the passing of the CHIPS and Science Act, now is the best time to invest in internal manufacturing capacity. The landmark $11 billion investment also represents the largest economic investment in Utah's history. The expansion of the Lehi wafer facility will create approximately 800 new TI jobs and thousands of indirect job opportunities. Additionally, TI looks forward to strengthening its partnership with the Alpine School District in Utah and investing $9 million to enhance students' future opportunities and achievements.

According to Utah Governor Spencer Cox, companies like Texas Instruments will continue to invest in Utah because the state has a globally top-notch business environment and excellent workforce. TI's new semiconductor wafer facility will solidify Utah's position as a global semiconductor manufacturing center.

Lehi is an ideal location for the new facility due to its skilled workforce, robust infrastructure, and tight-knit community partner network. The new facility is expected to produce tens of millions of analog and embedded processing chips daily for electronic product manufacturers worldwide.

The design of the new building will meet certified structural efficiency and sustainability standards, including Leadership in Energy and Environmental Design (LEED) Gold certification. The design plan includes a water recycling system that recovers water resources at almost twice the speed of the existing Lehi wafer facility. Lehi's advanced 12-inch wafer equipment and processes will also further reduce waste, water resources, and energy consumption per wafer produced.

Construction of the new facility is expected to begin in the second half of 2023 and is slated for production by 2026. The cost of the new facility is included in TI's previously announced capital expenditure plan to expand manufacturing capacity. TI's existing 12-inch wafer facility plan includes DMOS6 (Dallas), RFAB1 and RFAB2 (both in Richardson, Texas), and LFAB (Lehi, Utah). TI has also built four new 12-inch wafer facilities in Sherman, Texas.