We Toured Texas Instruments’ $60 Billion U.S. Fab Megaproject

Expansion and Investment - Texas Instruments announced a $60 billion seven-plant project to produce hundreds of millions of chips daily [2] - The company is building four fabs in Sherman, one outside Dallas, and two in Lehi, Utah, aiming for a 5X capacity increase [5] - The expansion decision involved choosing between Singapore and Sherman, Texas, highlighting the importance of domestic sourcing [27] Market and Strategy - Texas Instruments focuses on analog and embedded chips made on legacy nodes (45 to 130 nanometers), targeting industrial and automotive customers [11][12][13] - The company's chips are essential components in various devices, including smartphones, cars, and data centers, supporting AI applications [4][20] - Texas Instruments aims to regain market share and ensure capacity to meet future demand, betting on the growth of semiconductor content [39] Manufacturing and Technology - Texas Instruments is transitioning to 300mm wafers for cost efficiency, with a 300mm wafer holding approximately 230% more chips than a 200mm wafer [16] - The company is investing in water recycling, targeting at least 50% and potentially up to 80% recycle rate in its Sherman facility [34] - 100% of the energy used by the Sherman factory will be renewable [35] External Factors and Geopolitics - Tariff concerns have impacted Texas Instruments' stock, with potential pull-forward of demand to avoid tariffs [4][22][23] - Approximately 60% of Texas Instruments' revenue comes from customers outside the U S, with China accounting for 20%, exposing the company to geopolitical tensions [25] - Texas Instruments received $16 billion in CHIPS Act funding, plus a 35% investment tax credit [30]