Texas Instruments Breaks Ground on New Semiconductor Plant

New semiconductor plant will reduce U.S. dependence on China.

(The Center Square) – Texas Instruments (TI) broke ground Wednesday on the first of four potential 300-mm semiconductor wafer fabrication plants (“fabs”) in Sherman, Texas.

Its potential $30 billion investment in expanding its manufacturing capability long term is the largest private-sector economic investment in Texas history.

“Today is an important milestone as we lay the groundwork for the future growth of semiconductors in electronics to support our customers’ demand for decades to come,” TI Chairman, President and CEO Rich Templeton said. “Since our founding more than 90 years ago, we’ve operated with a passion to create a better world by making electronics more affordable through semiconductors. TI is excited to bring advanced 300-mm semiconductor manufacturing to Sherman.”

Last November, TI announced it had selected Sherman to build its new fabs. Founded in Dallas in 1930, TI is one of the largest employers in Texas and is the only semiconductor company headquartered in Texas. Investing in American-made semi-conductors helps avoid supply-chain backlogs, especially since the majority of semi-conductors are built overseas. Demand, especially in the industrial and automotive markets, is expected to continue.

A Fortune 500 company committed to North Texas, TI has locations in Richardson and Sherman and as far south as Houston. Its employees design, manufacture, test and sell analog and embedded processing chips for markets like industrial, automotive, personal electronics, communications equipment and enterprise systems.

“In the midst of a worldwide chip shortage, TI’s historic, long-term investment in Sherman will expand Texas’ global economic influence and benefit Americans across the country by strengthening our domestic semiconductor supply chain,” Gov. Greg Abbott said in a statement. “This new plant will be a boon to the hardworking people of North Texas, and I thank TI for their continued investment in the Lone Star State as we develop our growing advanced technology industry and keep our state a national leader in semiconductor manufacturing.”

Abbott delivered remarks at the groundbreaking. Grayson County Judge Bill Magers, Sherman Mayor David Plyler, state Sen. Drew Springer, state Rep. Reggie Smith, and other local community leaders were also in attendance.

The potential $30 billion investment includes plans to build four fabs to meet demand over time that are anticipated to support as many as 3,000 direct jobs. The new fabs will manufacture tens of millions of analog and embedded processing chips daily that will be used in electronics worldwide.

“This groundbreaking marks the next era of semiconductor production in Sherman that promises to create decades of economic opportunity and improve the quality of life for the region,” Plyler said. “We are grateful for TI’s long and continued investment in Sherman and look forward to our continued partnership.”

The first fab is expected to be in full production in 2025. The fabs will complement TI’s existing 300-mm fabs, which include DMOS6 in Dallas and RFAB1 in Richardson. Its RFAB2 also in Richardson, is expected to start production later this year. Another fab in Lehi, Utah, LFAB, is expected to begin production in early 2023.

“These investments in long-term manufacturing capacity further extend the company’s cost advantage and provide greater control of our supply chain,” Templeton said.

TI’s announcement last fall came around the same time that Samsung said it was investing $17 billion to build a new facility in Taylor, Texas, to manufacture world-class semiconductors and microchips. It’s the largest foreign direct investment in Texas on record, bringing the company’s total Texas investment to more than $47 billion since it began operations in the U.S. in 1978.

Both TI’s and Samsung’s investments in Texas are expected to help reduce future supply chain shortages and dependence on manufacturing in China.

Originally published by The Center Square. Republished with permission.