TI to Invest Over $60B in U.S. for 7 New Chip Plants
Texas Instruments (TI) has announced plans to invest over $60 billion in U.S.-based semiconductor manufacturing, marking one of the largest capital commitments in the history of the domestic chip industry. This major move reinforces TI's long-term strategy to bolster internal production and domestic capacity amid evolving geopolitical and economic dynamics.
In December 2024, following its pledge to invest at least $18 billion under the CHIPS and Science Act, the Biden administration approved $1.61 billion in federal funding to support TI's construction of three new fabrication sites. This funding complements TI's broader $60 billion investment strategy that spans across three locations in Texas and Utah, encompassing seven new or expanded manufacturing facilities—including two new fabs in Sherman, Texas. The initiative is expected to create up to 60,000 jobs and is being hailed as the largest investment in foundational semiconductor manufacturing in U.S. history.
Back in August 2024, TI had disclosed its intention to build seven fabrication sites, including a potential $40 billion investment in its Sherman operations, and up to $21 billion for projects in Utah and other parts of Texas.
The company confirmed that its long-term capital expenditure plans remain unchanged, with the overall figure covering both new builds and ongoing development of facilities already under construction or in operation.
Notably, TI had already embarked on an internal production expansion strategy prior to the CHIPS Act's enactment, aiming to reduce dependency on outsourced manufacturing. Executives at the Dallas-based company have emphasized the strategic value of building advanced fabs in the U.S. as a way to strengthen global competitiveness—particularly against rising competition from China.
As a leader in analog semiconductors, TI plays a critical role in manufacturing components that convert real-world signals—like sound and pressure—into digital data. While these chips are less complex than leading-edge processors, they are essential for a wide range of electronics. U.S. policymakers have expressed growing concerns over China's expanding footprint in this segment, especially as American export regulations restrict China's access to advanced chip technology. The CHIPS Act aims to support domestic firms like TI that produce these fundamental components.
Commerce Secretary Howard Lutnick, who is currently leading new negotiations around CHIPS Act funding, urged semiconductor companies to expand their U.S. operations further. At the same time, the Department of Commerce is considering the implementation of potential tariffs on imported semiconductors.
TI joins other leading chipmakers—such as GlobalFoundries, TSMC, and Micron—in ramping up U.S. investment amid political pressures. While none have requested additional subsidies beyond current commitments, these firms are positioned to benefit from generous tax incentives tied to domestic manufacturing expansion. TI emphasized that these incentives play a vital role in enabling large-scale infrastructure development.
“President Trump has made revitalizing U.S. semiconductor manufacturing—including foundational chips used in everyday electronics—a national priority,” Lutnick said in a statement regarding TI's investment.
Despite investor concerns over rising capital expenditures, TI has reiterated that the spending surge is temporary. The company has assured shareholders that once major projects like the Utah fab upgrade and Sherman construction are completed, it will scale back spending and refocus on shareholder returns through dividends and stock buybacks.
“We've completed about 70% of the investment phase,” CEO Haviv Ilan said in April 2025. “We are now in the final stretch of this capital-intensive cycle.”
