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1Clear out junk files and repair common Windows errors2Fix the driver behind crashes, sound loss and screen glitches3Repair Windows errors before they cause bigger problemsTexas Instruments’ June 2025 announcement of more than $60 billion for U.S. semiconductor manufacturing was an expanded and consolidated roadmap, not an entirely new $60 billion construction program. It covers seven 300mm fabs across Sherman and Richardson, Texas, and Lehi, Utah. The largest change was at Sherman, where TI raised the potential investment from roughly $30 billion to as much as $40 billion by adding two future fabs to the two already underway.
Since then, the first Sherman fab, SM1, has begun production. Other facilities are ramping, under construction or still planned, so the headline total does not mean all seven fabs are operating or that the full amount is being spent now.
What changed in TI’s investment plan?
The June 18, 2025 announcement brought together projects announced over several years and enlarged the Sherman portion of the roadmap. In November 2021, TI outlined a Sherman megasite plan of approximately $30 billion for four fabs. In 2025, it described up to $40 billion for Sherman’s four-fab build-out, including SM3 and SM4 as future additions to SM1 and SM2. The change is an expanded potential investment, not evidence that $10 billion in additional spending has already occurred. EE Times’ account of the Sherman plan provides the earlier-versus-updated framing.
The Lehi expansion and federal support also predate the 2025 total. TI announced the Lehi expansion, including LFAB2, in 2023. In August 2024 it announced a preliminary CHIPS Act funding agreement; the award agreement was finalized in December 2024. The following table shows how the June 2025 announcement grouped the facilities. TI has not published a full facility-by-facility dollar allocation for the more-than-$60-billion total.
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| Site | Fabs | Status and investment information |
|---|---|---|
| Sherman, Texas | SM1, SM2, SM3 and SM4 | SM1 and SM2 were underway; SM3 and SM4 were identified as future capacity. TI said the Sherman investment could reach up to $40 billion. |
| Lehi, Utah | LFAB1 and LFAB2 | LFAB1 was ramping; LFAB2 was under construction. The expansion was announced before the 2025 consolidated total. |
| Richardson, Texas | RFAB1 and RFAB2 | RFAB1 is an established 300mm analog fab; RFAB2 was ramping toward full production. |
TI’s June 2025 announcement describes the seven-fab program and Sherman figure. Its manufacturing announcements include the earlier Lehi expansion.
Which fabs are producing, ramping or still planned?
A fab can be under construction, equipped, running a pilot line, producing initial chips or operating at mature output; those milestones are not interchangeable. The status reported by TI through its February 2026 materials separates the new capacity from facilities that remain future plans.
Sherman
- SM1: TI said production began on December 17, 2025. That milestone does not establish that the fab has reached full utilization or final capacity. TI’s production announcement reports the start.
- SM2: Its exterior shell was complete by June 2025, and subsequent company materials described progress toward future ramp.
- SM3 and SM4: These are future fabs in the long-range Sherman plan. The June 2025 announcement did not set guaranteed construction or production dates for them.
Lehi
- LFAB1: TI’s first 300mm fab in Lehi was ramping and supporting production transfers.
- LFAB2: Construction was underway, with shell work progressing; TI said it is designed to connect to LFAB1.
Richardson
- RFAB1: The established 300mm analog fab. TI identified it as the world’s first 300mm analog fab when it opened.
- RFAB2: TI’s February 2026 materials described it as ramping toward full production and designed to more than double RFAB1 capacity.
These updates appear in TI’s 2026 site-status presentation. Ramp rates and completed construction do not, by themselves, show how much product is being shipped; customer qualification and demand also affect output.
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What kind of chips will the fabs make?
The plan centers on analog and embedded-processing semiconductors, not leading-edge logic processors of the kind used as flagship smartphone processors or advanced AI accelerators. Analog chips handle tasks such as managing power, sensing, converting signals and connecting components. Embedded processors control functions in vehicles, industrial equipment, personal electronics, enterprise systems and communications equipment.
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These components can be small parts of a product but essential to its operation. A shortage of a power-management or control chip can constrain production even when more advanced processors are available. Expanding U.S. capacity for these products may add resilience in a segment that is important across many industries, but it does not make the United States self-sufficient in every semiconductor category.
Why does 300mm manufacturing matter?
A 300mm wafer has more usable area than a 200mm or 150mm wafer, so it can yield more dies from a wafer when the product and process are suited to that size. Producing more chips per wafer can reduce unit costs if yields and factory utilization are strong. TI’s strategy is to build dependable, low-cost 300mm capacity at scale, building on its Richardson manufacturing base.
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Wafer size alone does not guarantee cheaper chips. Economics also depend on process maturity, yield, equipment utilization, product mix, depreciation and customer demand. A large factory with expensive equipment can be less cost-efficient if it is underused; similarly, a new process may take time to reach stable yields and qualify products for customers.
How much government support is included?
The federal support is a portion of the broader manufacturing build-out, not a subsidy for the whole more-than-$60-billion program. TI’s finalized CHIPS Act award is up to $1.6 billion in direct funding for three specified 300mm fabs under construction: Sherman’s SM1 and SM2, and Lehi’s LFAB2. TI also estimated $6 billion to $8 billion in investment-tax-credit benefits associated with the projects. Those are separate forms of support, and the tax-credit figure is TI’s estimate rather than direct grant funding.
The distinction matters when interpreting the investment headline: the $60-billion-plus figure describes TI’s planned U.S. manufacturing investment across facilities at different stages, while the direct award and estimated tax benefits have their own terms and scope. The December 2024 award announcement identifies the three supported fabs. TI’s preliminary-agreement announcement describes the proposed direct funding and tax-credit estimate.
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What does the plan mean for jobs, customers and U.S. supply?
TI says the combined sites could support more than 60,000 U.S. jobs and produce hundreds of millions of chips daily. “Jobs supported” should not be read as a count of permanent direct fab employees: the public announcement does not provide a breakdown in that figure between construction, direct employment and wider economic effects. The daily chip figure is a company projection for the combined sites, not a report of their current output.
TI’s announcement named Apple, Ford, Medtronic, NVIDIA and SpaceX as customers or partners. That does not establish that the new fabs are dedicated to those companies or that each will purchase a particular volume from them.
The company’s stated reasons for expanding include expected demand for analog and embedded chips, greater supply resilience, scale efficiencies from 300mm production and support for customers seeking dependable U.S.-based manufacturing. More domestic capacity can reduce exposure to some overseas disruptions. It cannot remove reliance on global suppliers for specialized manufacturing equipment, materials, packaging and other parts of the semiconductor supply chain. Nor does a long-term fab build-out translate automatically into near-term revenue or earnings.
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How to judge whether the roadmap is on track
The most useful indicators are progress from construction to qualified, utilized production—not just the headline investment figure. Watch for:
- Construction and equipment: shell and cleanroom completion, followed by tool installation.
- Production qualification: pilot runs, initial production and the qualification of customer products, which can take time when products move from an older fab.
- Utilization and demand: whether customer orders support the planned capacity, particularly for future Sherman fabs.
- Capital spending: actual annual outlays compared with the long-term roadmap. In February 2026, TI expected approximately $2 billion to $3 billion of 2026 capital expenditures, excluding CHIPS Act benefits; that annual outlook is not the cost of the full program. See the February 2026 capital-management presentation.
- Workforce and execution: whether TI can recruit and train specialized workers as projects advance.
- Funding milestones: how construction and production progress against the conditions attached to government support.
The trade-off is familiar in large-scale manufacturing: U.S. production may improve geographic resilience, while labor, construction and operating costs can be higher. Building well ahead of demand creates room for growth but exposes the company to weaker demand or underused capacity. The timeline also matters: announcements and construction milestones precede customer-qualified output.
Key dates in the build-out
| Date | Milestone |
|---|---|
| November 2021 | TI announced its Sherman megasite plan; earlier plans contemplated approximately $30 billion for four fabs. |
| 2023 | TI announced the Lehi 300mm expansion, including LFAB2. |
| August 16, 2024 | TI announced a preliminary CHIPS Act agreement for up to $1.6 billion in direct funding and estimated $6 billion to $8 billion in investment-tax-credit benefits. |
| December 20, 2024 | The CHIPS Act award agreement was finalized for up to $1.6 billion supporting SM1, SM2 and LFAB2. |
| June 18, 2025 | TI announced more than $60 billion across seven U.S. fabs and up to $40 billion for four Sherman fabs. |
| December 17, 2025 | TI announced that production had begun at Sherman’s SM1. |
| February 2026 | TI reported site progress and forecast approximately $2 billion to $3 billion in 2026 capital expenditures, excluding CHIPS Act benefits. |
Sources: TI’s June 2025 announcement, SM1 production announcement, CHIPS Act award announcement and the February 2026 capital-management presentation.
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