Texas Instruments Inc., headquartered in Dallas, has revealed ambitious plans to invest over $60 billion into semiconductor plants in the United States.
This announcement aligns with a broader push from the U.S. government encouraging domestic manufacturing amidst ongoing discussions about tariffs that could impact the semiconductor sector.
The company’s long-term capital spending strategy remains intact, with the total investment encompassing funds designated for ongoing plant constructions and enhancements aimed at reaching full production capacity.
Texas Instruments will commence construction of two new factories at its Sherman site, contingent upon market demand.
In a marked shift from industry norms favoring outsourcing, Texas Instruments has been proactively increasing its domestic production capabilities.
This initiative began prior to the introduction of government subsidies aimed at revitalizing semiconductor manufacturing under President Joe Biden’s administration.
Company leadership expressed to investors that establishing new and enhanced manufacturing plants in the U.S. is essential for bolstering competitiveness, particularly against Chinese firms.
Texas Instruments holds a leading position in the analog chip market, specializing in components that convert real-world signals, such as sound and pressure, into electronic signals.
Chinese manufacturers are aggressively scaling up their capabilities in this area, largely due to U.S. regulations that restrict their access to advanced processors.
U.S. officials have long been vigilant regarding the possibility of China gaining dominance in the semiconductor market, leading to the Biden administration providing support to Texas Instruments and other analog component producers under the 2022 Chips and Science Act.
Commerce Secretary Howard Lutnick is currently renegotiating awards from the Chips Act as he encourages companies to broaden their project scopes while his agency examines potential tariffs affecting semiconductors.
Alongside Texas Instruments, three additional chipmakers—GlobalFoundries Inc., Taiwan Semiconductor Manufacturing Co., and Micron Technology Inc.—have highlighted current and planned investments dating back to President Donald Trump’s term without explicit promises of new government grants.
These companies are expected to gain from generous tax credits associated with their projects, which Texas Instruments has identified as a crucial incentive for its investments.
Secretary Lutnick remarked, “President Donald Trump has made it a priority to increase semiconductor manufacturing in America—including these foundational semiconductors that go into the electronics that people use every day.”
Despite the promising outlook, Texas Instruments’ increase in capital expenditure has led to some discontent among investors, who had anticipated greater returns from their investments.
The company has assured these investors that the heightened spending is temporary and that following the completion of its Utah facility upgrades and the Sherman constructions, they aim to lower capital expenditures and enhance shareholder returns.
In an update delivered in April, Chief Executive Officer Haviv Ilan noted, “we’re 70% through the elevated investments.
So we’re in the, approaching the last innings of the elevated capex period.”
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