A semiconductor manufacturing technician checks instrument readings inside the Texas Instrument LFAB1 plant in Lehi. The company is expanding its 300mm computer chip fabrication capacity at the Utah County facility. Photo courtesy Texas Instruments.
Dallas-based Texas Instruments is doubling down on its commitment to keep manufacturing semiconductors and to build the new fabrication facilities necessary to do the job. TI announced earlier this month its plans to invest more than $60 billion across seven U.S. semiconductor fabs — shorthand for the manufacturing plants where the computer chips are made.
The company characterizes the commitment as the largest investment in foundational semiconductor manufacturing in U.S. history.
And that includes TI’s previously committed $11 billion expansion of its Lehi plant, already well into the construction phase.
Working with the Trump administration and building on the company’s nearly 100-year technology legacy, TI is expanding its U.S. manufacturing capacity to supply the growing need for semiconductors and reduce the nation’s dependence on foreign supply. The increased demand comes from domestic manufacturing of everything from vehicles to smartphones to data center equipment. Combined, TI’s new manufacturing mega-sites in Texas and Utah will support more than 60,000 U.S. jobs, the company said.
Designated LFAB2 by Texas Instruments — the “L” stands for Lehi — the new Utah construction has been called the “largest economic investment in Utah history” by TI and parroted by local officials. The plant will be capable of producing tens of millions of computer chips per day at full production. The buildings will be powered by 100 percent renewable electricity and certified LEED Gold for sustainability.
The Lehi fab will produce primarily 300-millimeter semiconductors, one of the largest chips made. It is a silicon wafer with a diameter of 300 millimeters (approximately 12 inches), which is a standard size used in the semiconductor industry for manufacturing integrated circuits. The larger wafers allow for more chips to be produced per wafer, increasing efficiency and reducing costs.
“TI is building dependable, low-cost 300mm capacity at scale to deliver the analog and embedded processing chips that are vital for nearly every type of electronic system,” said Haviv Ilan, president and CEO of Texas Instruments. “Leading U.S. companies such as Apple, Ford, Medtronic, NVIDIA and SpaceX rely on TI’s world-class technology and manufacturing expertise, and we are honored to work alongside them and the U.S. government to unleash what’s next in American innovation.”
Construction is going forward in Lehi at the Texas Instrument LFAB2 semiconductor fabrication facility. The project is part of an $11 billion capital investment in the expansion of the company’s Utah plant. Photo courtesy Texas Instruments.
With TI’s ongoing efforts in Lehi, the company hit a speed bump with a round of layoffs in March. The company did not specify the number of workers who lost their jobs and characterized the reduction as temporary.
“Texas Instruments made some organizational changes at our site in Lehi to ensure we are positioned to efficiently support our long-term operational plans. These changes included eliminating some roles,” a TI spokesperson said in a statement.
The cuts came shortly after the U.S. Department of Commerce awarded Texas Instruments up to $1.6 billion in CHIPS Act funding in support of three new 300-millimeter semiconductor wafer fabrication plants that are already under construction in Lehi and Sherman, Texas, and up to $10 million to support workforce development.
The CHIPS Act, officially known as the Chips and Science Act of 2022, is a U.S. federal law championed by the Biden administration designed to bolster domestic semiconductor research, manufacturing and workforce development. It allocates roughly $280 billion in funding, with $52.7 billion specifically for semiconductor-related initiatives. The act aims to strengthen the U.S. economy and national security by reducing reliance on foreign chip production.
Despite the springtime layoffs, Texas Instruments says it stands committed to its local investment.
“Utah continues to be an important part of our manufacturing footprint and company strategy, as we build the geopolitically dependable capacity our customers will need for decades to come,” the spokesperson said. “Our long-term commitment to Utah, which includes building the fab in Lehi, remains unchanged.”
With CHIPS Act funding initiated during the Biden administration and a seemingly iron-clad mandate to bring semiconductor manufacturing onshore, Texas Instruments is going full steam ahead as it gears up for the next generation of computer chip production.
“For nearly a century, Texas Instruments has been a bedrock American company driving innovation in technology and manufacturing,” said U.S. Secretary of Commerce Howard Lutnick. “President 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. Our partnership with TI will support U.S. chip manufacturing for decades to come.”
In addition to the Lehi fab, TI’s $60 billion expansion includes a second plant in Sherman, Texas, designated SM2, already nearing completion, as well as future SM3 and SM4 facilities. RFAB1 in Richardson, Texas, will be joined by RFAB2, also now under construction.