June 18, 2025— Texas Instruments (NASDAQ: TXN) has announced plans to invest over $60 billion in U.S.-based semiconductor manufacturing, marking what it calls the largest investment in foundational chipmaking in American history. The move, unveiled on Wednesday, comes amid growing political pressure under former President Donald Trump’s renewed push to bring semiconductor production back to U.S. soil.
The announcement marks a sharp escalation from the company’s previous commitments and is part of an industry-wide push to increase domestic chip production amid global supply chain uncertainties and rising competition, particularly from Chinese manufacturers.
A Historic Investment in American Manufacturing
Texas Instruments said the $60 billion will be used to build or expand seven semiconductor fabrication plants (fabs) across Texas and Utah. The investment includes two brand-new facilities in Sherman, Texas, and adds to the company’s prior commitment to spend up to $40 billion in Sherman and $21 billion more across other Texas and Utah sites. The company projects the plan will create around 60,000 direct and indirect jobs over its full implementation.
“This is the largest investment in foundational semiconductor manufacturing in U.S. history,” the company said in a statement, emphasizing its focus on analog and embedded chips—essential components used in everyday products ranging from mobile phones and automobiles to medical equipment and industrial machines.
While companies like Nvidia and AMD specialize in cutting-edge processors for artificial intelligence and high-performance computing, Texas Instruments has carved out a massive market in analog chips. These are crucial for translating real-world signals into digital data and are used by major firms like Apple, SpaceX, and Ford Motor Company.
Tapping Into CHIPS Act Momentum
Wednesday’s announcement builds on the momentum of the Biden administration’s CHIPS and Science Act, which was signed into law in 2022 to promote domestic chip manufacturing through $52.7 billion in subsidies and incentives. In December 2024, the Biden administration awarded Texas Instruments a $1.61 billion grant to support the construction of three new facilities.
While much of the $60 billion appears to include previously allocated funds and projects already under construction or nearing completion, the scale of the commitment sends a strong message. The move positions Texas Instruments as a significant player in securing U.S. semiconductor independence, especially in the face of potential policy shifts under a possible second Trump administration.
Commerce Secretary Howard Lutnick praised the development, stating, “The Texas Instruments investment will strengthen foundational semiconductors that go into the electronics people use every day. Our partnership with TI will support U.S. chip manufacturing for decades to come.”
The Trump Factor
The massive investment also comes as companies brace for possible changes under former President Trump, who has suggested that he may dismantle the CHIPS and Science Act if reelected. Industry insiders say many chipmakers are rushing to announce major spending plans now in a bid to persuade Trump to preserve the program.
“Many firms are hoping these commitments signal the importance of the CHIPS Act to U.S. innovation and security,” said one Washington policy analyst. “This is less about politics and more about national competitiveness. But firms are clearly trying to hedge their bets.”
Trump, who has made trade protectionism a key policy stance, has floated the idea of placing new tariffs on semiconductor imports, particularly from China. That has made reshoring manufacturing an urgent strategic priority for U.S. firms.
Strategic Positioning in a Global Race
Texas Instruments’ move reflects broader trends in the semiconductor sector. Competitor Micron Technology announced last week that it would expand its domestic investment by $30 billion, pushing its total planned U.S. spending to $200 billion.
The drive to reshore chip production is not just about security or politics—it’s also a strategic response to intensifying global competition. Chinese analog chipmakers have made significant inroads in recent years, and U.S. companies are scrambling to maintain their lead in critical manufacturing capabilities.
While the analog chip sector doesn’t attract as much media attention as AI processors or quantum computing, it remains a vital backbone of the global electronics ecosystem. “The world runs on analog,” said one industry executive. “You can’t build a car, power a satellite, or even charge your phone without these chips.”
Long-Term Vision, Unclear Timeline
Despite the scope of the $60 billion announcement, Texas Instruments has not provided a precise timeline for the full deployment of the funds. The company said that its long-term capital expenditure (CapEx) plans remain unchanged, suggesting that the investment will roll out over several years, if not decades.
The focus, company officials said, is not on rapid expansion but on building sustainable, state-of-the-art manufacturing capacity that can support long-term demand.
Conclusion
Texas Instruments’ sweeping investment marks a bold bet on the future of American semiconductor manufacturing. While parts of the funding are not new, the public declaration of such a monumental sum is a strategic message to both Washington and Beijing: the U.S. intends to remain a leader in foundational chip technology.
As the political winds shift and global tensions remain high, TI’s move is both a defensive strategy and an offensive maneuver—ensuring it not only survives but thrives in an increasingly competitive and politicized industry.
