ti doubles down: $60 billion to boost us chip production

2025-06-19 general

Dallas, Thursday, 19 June 2025.
Texas Instruments is making a massive $60 billion investment. The goal is to expand its U.S. chip manufacturing. Seven new facilities will be built in Texas and Utah. The investment is supported by Chips Act funding. TI will receive up to $1.61 billion. This move could create 60,000 jobs. It also marks the largest capital spending in U.S. semiconductor history. This will help address the semiconductor shortage. It will also strengthen domestic production capabilities. This investment aims to secure America’s lead in chip technology.

boosting domestic production

This investment will expand chip manufacturing in the U.S. [1]. Texas Instruments (TI) plans to construct seven new semiconductor fabs across three mega-sites in Texas and Utah [3]. The Sherman, Texas site will include up to $40 billion in investment for four fabs [1][3]. These are named SM1, SM2, SM3, and SM4 [3]. TI is also increasing production at its Richardson, Texas (RFAB2) and Lehi, Utah (LFAB1) facilities [3]. A second fab is under construction in Lehi, Utah [3]. These fabs are designed to produce billions of foundational semiconductors [3].

government support and industry impact

The U.S. government views semiconductors as crucial for economic strength and national security [1]. Secretary of Commerce Howard Lutnick stated that President Trump has prioritized increasing semiconductor manufacturing in America [1][3]. He added that the partnership with TI will support U.S. chip manufacturing for decades [1][3]. TI received up to $1.6 billion in Chips Act funding in December [4]. However, a company spokesperson said these funds would not be used in this latest endeavor [6]. The CHIPS and Science Act, signed in 2022, allocated $53 billion to support domestic semiconductor manufacturing [6].

strategic focus and market positioning

TI’s investment focuses on analog and embedded processing chips [3]. These chips are essential for various electronic systems [1][3]. TI’s President and CEO Haviv Ilan stated that TI is building dependable, low-cost 300 mm capacity at scale [1][3]. This is aimed to deliver vital chips for nearly every type of electronic system [1][3]. TI’s customers include Apple, Ford, SpaceX, Medtronic, and Nvidia [4][7]. Stephen Sopko, an analyst at HyperFrame Research, believes that TI is strengthening its position in the semiconductor ecosystem [6].

investment outlook

Analysts suggest a positive outlook for TI’s stock [8]. TI’s focus on analog chips for automotive, industrial, and medical devices is promising [8]. Automotive electrification is projected to double analog chip demand by 2030 [8]. Currently, TI’s stock trades at 20x forward P/E, a discount to its 5-year average of 24x [8]. An investment strategy suggests buying TI stock with a 3–5 year investment horizon [8]. A price target of $200 has been set, compared to a current price of $165 [8].

Bronnen

chips act semiconductors