Amid National Semiconductor Wave, Texas Instruments Begins $30 Billion Build

Diving Brief:

  • Texas Instruments, a Dallas-based semiconductor company, opened its estimated $30 billion facility in Sherman, Texas last month. according to a company announcement. It is the largest private sector investment in Texas history, according to the release. Production is expected to start in 2025.
  • The facility’s four fabricators, also known as “fabs”, will manufacture 300mm wafer semiconductors, which are used in a variety of electronic devices. The plant will create up to 3,000 direct jobs, according to the statement. The city won the tender against a competing site in Singapore, according to KXII local media.
  • Texas Instruments will use the facility to bolster a growing number of new factories that are part of a larger industry-wide push to manufacture more chips in the United States. The company has one plant in Dallas and two in Richardson, Texas, the second of which will begin production later this year, according to the release. She also recently acquired a fab in Lehi, Utah, from competitor Micronwhose production will begin in 2023.

Overview of the dive:

Semiconductor makers are taking off across the country. Fabs centered in Arizona in particular, like two Intel factories worth $20 billion and a Taiwan Semiconductor Manufacturing Co. (TSMC) a $12 billion factoryare making headlines as the country and the industry grapple with supply chain issueswhich drove up prices and dampened the production of consumer goods, according to CNBC.

More recently, Intel selected a team led by Gilbane to work on its two more than $20 billion factories in Licking County, Ohio. depending on the company. The project will generate 7,000 construction jobs during construction.

“Today is an important milestone as we lay the foundation for future semiconductor growth in electronics to meet our customers’ demand for decades to come,” said TI’s Chairman and CEO. , Rich Templeton, in the release.

The industry has also just had a banner year. In 2021, global semiconductor industry sales totaled $555.9 billion with 1.15 trillion semiconductors sold, according to the Semiconductor Industry Association. Those sales were up 26.2% from the $440.4 billion total in 2020, even with supply chain issues.

SIA CEO and President John Neuffer said the increase in chip creation was in response to growing demand and said in the statement that production had reached “unprecedented levels” last year.

“The demand for semiconductor production is expected to increase significantly in the coming years as chips become increasingly integrated into the essential technologies of today and tomorrow,” Neuffer said in the press release.

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