American semiconductor giant Texas Instruments (TI) is taking one of the industry’s most substantial technology leaps in recent years. The company known for manufacturing analog chips, calculators, and digital signal processors has announced it will invest more than $60 billion to expand analog semiconductor manufacturing in the U.S.
Unlike high-performing chips for artificial intelligence or gaming, analog chips play a different yet crucial role. This is because they bridge the digital world with the real world, carrying signals that represent temperature, sound, or pressure. These chips are used in cars, smartphones, medical devices, and factory equipment. Without them, even the smartest AI can’t interact with physical reality.
Texas Instruments plans to build or expand seven chip fabrication plants, also known as fabs, across Texas and Utah, which includes two new plants in Sherman, Texas. These fabs will play a role in ramping up production of analog and embedded chips that are crucial for sensors, power management, and signal processing on nearly every connected device.
The move is not just about capacity—it’s about long-term innovation. As a greater number of devices get “smart” and connected via the Internet of Things (IoT), they will require analog chips in huge quantities. From smart home devices to high-end cars with driver-assist features, analog semiconductors are built to handle the real-world inputs that digital chips, acting as generalized-purpose computers, were never able to address.
TI’s expansion is also about reducing risk. Currently, most of the semiconductor manufacturing takes place outside the United States. By building additional factories in the U.S., TI is creating a more reliable and secure chip supply. It also shields innovation pipelines from global disruptions.
The $60 billion investment encompasses previously announced projects and new ones under the U.S. CHIPS and Science Act. The law backs making chips at home with funding and tax incentives. TI has already secured $1.61 billion in government backing for three of its proposed sites. The company has not stated how long the expansion would take but says it is part of a longer-term tech strategy.
