The chip manufacturing expansion by Texas Instruments (TI) is an investment program involving the construction and expansion of fabrication facilities in the United States. The company unveiled a $60 billion plan to build or expand seven chip manufacturing plants across sites in Texas and Utah. The investment was associated with an estimated 60,000 jobs as the projects progressed. The facilities were focused on the production of 300 mm analog and embedded processing chips used in applications such as consumer electronics, automotive systems, and industrial equipment. The initiative formed part of broader developments in semiconductor manufacturing, including efforts related to domestic production capacity and supply chain arrangements.

Other Projects

Other than the Texas Instruments chip making facilities, Elon Musk is also unveiling a project dubbed Terafab in Austin, Texas. Elon Musk has asserted that that the Terafab project slated for Austin, Texas will be the largest chip manufacturing factory of its kind. The project is a joint venture between Tesla, SpaceX and xAI. Musk noted that the facility is the next step towards harnessing the power of the sun and also creating a galactic civilization. The CEO of all three companies announced plans for the Terafab in a livestream session on X.

Aligned with National Policy Push

Moreover, this move echoes President Trump’s renewed call for semiconductor manufacturing to return home. Consequently, Commerce Secretary Howard Lutnick praised the deal, noting it will underpin U.S. chip production “for decades to come”.
TI highlighted the partnership, stating its collaboration with top companies like Apple, Ford, Medtronic, Nvidia, and SpaceX strengthens America’s technological leadership and national security. This approach matches other major U.S. projects, including Micron’s recent $200 billion pledge to expand memory chip manufacturing and R&D under the CHIPS and Science Act.

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What It Means on the Ground

On the ground, TI’s investment breaks down as: $40 billion for four fabs in Sherman, Texas (two already under construction) and $15 billion for sites in Richardson, TX and Lehi, Utah.
Altogether, these facilities will produce hundreds of millions of chips daily. Although TI hasn’t provided a specific construction timeline, it confirmed that SM1 in Sherman is on track to enter production this year.

A Strategic Move, Not Without Questions

Finally, while TI frames this as a bold reshoring move, industry analysts caution that much of this investment was already planned. As one observer noted, TI’s announcement may partly reflect existing capital expansion rather than entirely new money. Nevertheless, its investment solidifies the U.S. position in foundational chip making and sets an example for future resilience, through challenges remain in execution, funding uncertainty from policies like the CHIPS Act, and potential trade tensions.

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The Texas Instruments Chip Projects Overview

Total Investment

Over $60 billion planned to build and expand semiconductor facilities across the U.S.
Split: $40 billion for Sherman, Texas (4 fabs: SM1–SM4), $15 billion for Utah site, and remaining $5 billion across Richardson, TX

Locations & Facilities

Sherman, Texas: Two fabs under construction (SM1 launching production this year; SM2 shell complete) plus two additional fabs planned.
Richardson, Texas: Expansion of existing fabs (RFAB2 ramping up)
Lehi, Utah: Second fab under construction alongside ramping up LFAB1

Job Creation

Project will deliver approximately 60,000 new jobs across construction and operations.

Chip Focus

Facilities will manufacture analog and embedded processing chips (foundational semiconductors) using 300 mm wafer processes
Chips supply a broad range of industries: smartphones, vehicles, medical devices, satellites, AI infrastructure

Strategic Alignment

Branded as the largest-ever U.S. foundational semiconductor investment
Aligned with Trump administration’s push to reshore chip manufacturing and strengthen supply chains
Receives $1.6 billion CHIPS Act subsidy and support from major clients including Apple, Ford, Medtronic, Nvidia, and SpaceX