On Thursday, Texas Instruments announced that the company plans to invest $3 billion every year in manufacturing U.S. semiconductor chips through 2025. From 2026 to 2030, it will continue investing 10% of its annual revenue into its manufacturing process.
Texas Instruments predicts that this investment plan will bring in 7% in revenue growth for 2030 and forward. This expansion includes a plan to begin construction on two of four new factories. Production is expected to start at the first factory in 2025.
The second factory will be ready for production soon after that, with more investments, said Rafael Lizardi, the chief executive officer for Texas Instruments. The third and fourth factories will begin construction sometime between 2026 and 2030.
All four new plants will be located in Sherman, TX, and are expected to bring in $5 billion to $6 billion in revenue annually once fully operational, according to Lizardi.
On November 17, 2021, Texas Instruments first announced its plan to invest $30 billion into the Sherman campus. The City of Sherman and Grayson County both approved an incentive package for Texas Instruments, offering a ten-year, 90% property tax abatement to encourage Texas Instruments to reinvest in the local economy. The company says that the new plants can support as many as 3,000 jobs when completed.
Recently, the Biden Administration has pushed the CHIPS Act, which will provide $52 billion to “catalyze more private-sector investments and continued American technological leadership.”
Lizardi has stated that the current plans don’t factor in the incentives from the federal legislature, but the company could potentially expedite the process if it does receive them.
In the face of an “alarming” shortage, chip manufacturers have announced about $80 billion in U.S. production investments, according to information from the White House.
Texas has recently become a big landing zone for the domestic production of semiconductor chips. In November 2021, Samsung announced that it would also be building a plant that will cost $17 billion just north of Austin.