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Texas Instruments’ $60B-Plus U.S. Chip-Fab Plan: What It Includes

Texas Instruments’ announced $60B-plus U.S. plan spans seven fabs at three sites. Here’s what it covers, how federal support differs, and what is now producing.
From TheFinanceBase Team4 min to read
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Texas Instruments announced plans on June 18, 2025, to invest more than $60 billion across seven U.S. semiconductor fabs at sites in Texas and Utah. The company called it the largest investment in foundational semiconductor manufacturing in U.S. history; that is TI’s characterization, not an independently verified ranking. The plan is a multiyear corporate investment, not a single federal grant. Since the announcement, TI has reported that its Sherman SM1 fab began production on December 17, 2025.

How much is TI investing, and what does the total cover?

TI’s June 2025 announcement put its planned investment at more than $60 billion for seven fabs across three U.S. manufacturing sites. A separate figure in the announcement—up to $40 billion—applies to four fabs at the Sherman, Texas, site. These are company investment plans; they should not be added together because the Sherman amount is part of the broader plan.

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The federal figure is different in both source and scope. The U.S. Department of Commerce lists up to $1.61 billion in direct CHIPS and Science Act funding for TI. Commerce says the supported projects involve more than $18 billion in investment through the end of the decade across three facilities in Texas and Utah. That award-supported project scope is not the same as TI’s seven-fab, $60-billion-plus corporate plan.

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Figure What it covers Source and qualification
More than $60 billion TI’s seven-fab U.S. plan across three sites TI announcement, June 18, 2025; corporate plan
Up to $40 billion Four fabs at Sherman, Texas TI announcement, June 18, 2025; included within the broader plan
Up to $1.61 billion Direct federal CHIPS and Science Act funding U.S. Department of Commerce project listing, accessed 2026; supports a narrower set of projects
More than $18 billion Investment associated with the Commerce-supported projects through the end of the decade U.S. Department of Commerce project summary, accessed 2026; distinct from TI’s broader plan

Where are the seven fabs, and what is their status?

TI’s plan groups seven fabs across Sherman and Richardson, Texas, and Lehi, Utah. Their statuses differ: SM1 has begun production, while the other fabs range from underway or ramping to planned for future demand.

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Site Fabs in TI’s plan Status reported by TI
Sherman, Texas SM1, SM2, SM3, SM4 SM1 began production December 17, 2025. SM2 was underway in June 2025. SM3 and SM4 were incremental plans tied to future demand.
Richardson, Texas RFAB1, RFAB2 TI described RFAB2 as ramping toward full production in June 2025.
Lehi, Utah LFAB1, LFAB2 TI described LFAB1 as ramping and LFAB2 as under construction in June 2025.

For Sherman SM1, TI said production would ramp according to customer demand and that the fab would ultimately produce tens of millions of chips daily. That is a stated eventual scale, not a report of current daily output. TI’s earlier June announcement had described initial production as expected during 2025; the December update superseded that prospective wording with a reported start date.

What kind of chips will the fabs make?

The plan centers on analog and embedded processing chips, often called foundational semiconductors. Commerce identifies power-management integrated circuits, microcontrollers, amplifiers, and sensors as examples of these current-generation and mature-node components. They support a wide range of electronic systems rather than serving only one consumer device category.

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For the projects covered by Commerce’s award listing, the agency describes planned 65nm–130nm analog and embedded chips at Sherman and 28nm–65nm analog and embedded chips at Lehi. These process ranges describe those supported projects; they do not mean the fabs are making the most advanced logic processors.

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TI has cited vehicles, smartphones, data centers, satellites, medical devices, industrial robots, and smart-home appliances as applications for the kinds of chips involved. TI also named Apple, Ford, Medtronic, NVIDIA, and SpaceX as partners. The announcements do not disclose contract values or detailed product allocations, so the named relationships should not be read as a public accounting of supply commitments for each fab.

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What job figures have been announced?

TI said its combined new manufacturing mega-sites would support more than 60,000 U.S. jobs. Separately, Commerce estimates that the narrower set of supported projects will create more than 2,000 manufacturing jobs and over 20,000 construction jobs over time. These are projections or jobs supported, not counts of positions already filled, and the two figures cover different scopes.

TI’s press materials also describe hundreds of millions of chips manufactured daily across its operations. That is a company-reported figure, not a measurement of output from the new fabs alone. For Sherman SM1 specifically, TI’s stated tens-of-millions-per-day figure refers to the fab’s eventual capacity as it ramps with customer demand.

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Why TI describes the investment as historic

TI’s claim is tied to the scale of its announced investment in foundational semiconductor manufacturing in the United States. The plan spans three sites and seven fabs rather than one facility, and the Sherman portion alone is described as up to $40 billion for four fabs. No independent ranking in the available announcements verifies the “largest in U.S. history” superlative, so it is most accurate to attribute it to TI.

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The scale also has a longer history at Sherman. At the site’s May 2022 groundbreaking, TI described a potential $30 billion investment for four fabs and expected first production in 2025. That was an earlier, site-specific potential figure. It should not be substituted for the later $60-billion-plus plan, which covers multiple sites; TI subsequently reported that SM1 production began in December 2025.

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