Texas Instruments Expands Chip Manufacturing with Two New Fabs in Texas

Texas Instruments

Texas Instruments Expands Domestic Semiconductor Capacity

Texas Instruments (TI) will build two new semiconductor fabrication facilities in Sherman, Texas, as part of its $60bn investment plan. The company aims to strengthen domestic semiconductor production amid rising demand and strategic US policy support. These facilities will join seven other fabs already operating or planned across Texas and Utah, collectively expected to produce hundreds of millions of chips daily at full capacity.

Federal Support Boosts Semiconductor Manufacturing Investment

The US government is playing a central role in enabling TI’s semiconductor expansion. In 2024, TI secured $1.6bn under the US Chips and Science Act to support construction of its first two Sherman fabs and its second Lehi, Utah, facility. The company also expects $6bn–8bn in additional tax credit funding from the US Treasury Department’s advanced manufacturing investment program. If Congress raises the investment credit percentage from 25pc to 30pc, TI could gain further support for its projects.

Broader Impact on Semiconductor Supply Chains

TI’s semiconductor fabs will play a crucial role in securing critical supply chains for US industries. The company produces analog and embedded processing semiconductors for major customers such as Apple, Ford, Medtronic, Nvidia, and SpaceX. By expanding capacity, TI will help reduce reliance on foreign semiconductor sources, strengthen resilience against supply shocks, and enhance competitiveness across technology and automotive markets.

The Metalnomist Commentary

Texas Instruments’ expansion reflects the reshaping of global semiconductor supply chains under US industrial policy. While the $60bn investment is significant, its real impact lies in reducing import dependency and fortifying key technology sectors. The fabs will strengthen US capabilities in advanced manufacturing, ensuring long-term resilience in a geopolitically sensitive industry.