TI Invests $11 Billion into 300mm Wafer Plant Expansion
By: SiliconExpert on February 16th, 2023
February 16, 2023 – Texas Instruments announced its $11 billion investment plan to build a new 300-millimeter semiconductor wafer fabrication plan in Lehi, Utah. New fab production is slated to start in the second half of this year with production live in 2026.
This plant will be adjacent to their existing semiconductor plant and will add approximately 800 jobs to the area once completed. According to Executive Vice President and Chief Operating Officer, Haviv Ilan, “This new fab is part of our long term, 300-mm manufacturing roadmap to build the capacity our customers will need for decades to come.” In addition to adding new jobs, this will secure Utah as a leading global manufacturing hub for many years to come.
CHIPS Act Driving Semiconductor Growth in the United States
In 2022, U.S. Congress passed the CHIPS and Science Act, promising to bring semiconductor
manufacturing back home. In the past two decades, manufacturing capacity in the U.S. had severely declined by 37%.
The CHIPS and Science Act was further reinforced in the State of the Union Address earlier in February. U.S. President Biden was steadfast in his commitment to bringing supply chain back to the U.S. “We’re making sure the supply chain for America begins in America.” With support from government regulation and funding, companies like TI now have access to the $39 billion in financial assistance and 25% tax credit for investment into the semiconductor manufacturing industry.
Impact on the Automotive Sector
In 2021, the semiconductor shortage had a widespread impact on the automotive industry as automakers were forced to cut production and incur significant revenue losses as lead times nearly tripled due to COVID-19 lasting impacts. While semiconductor chips are used in many products such as smart phones, automotive makers are one of the largest users as the average modern car can have up to 1,500 semiconductor chips – with some up to 3,000.
TI now following suit of other manufacturers, like Intel, are directly addressing the shortage impact for decades to come. This paves the way for domestic manufacturers, like GM and Ford, to source semiconductors locally and avoid the supply chain disruptions the U.S. saw in 2021 like extended lead times, shipping delays, and shortages.
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