Texas Instruments (TI) plans to invest over US$60 billion to expand semiconductor manufacturing in the US.

The initiative will establish seven fabrication plants in Texas and Utah, creating over 60,000 jobs, according to the company’s statement on Wednesday.

The investment aligns with US efforts to boost domestic chip manufacturing amid global tech competition.

TI is working with the US government to produce critical semiconductors used in devices like smartphones, vehicles, and data centers.

US Commerce Secretary Howard Lutnick praised the move as vital for long-term national semiconductor strength.

TI’s announcement follows similar domestic investment pledges by General Motor (GM) and Apple as part of a broader onshoring trend.

🔗 Source: CNN

🧠 Food for thought

1️⃣ TI’s investment continues a long history of critical government-industry partnership

The US government has historically played a pivotal role in developing the semiconductor industry through strategic purchasing power and research funding.

In the 1950s and 1960s, military and NASA contracts were essential to the early semiconductor industry’s growth, with NASA purchasing 60% of all US-produced integrated circuits by the mid-1960s1.

This government demand helped drive innovation and dramatically reduced costs from $32 per chip in 1961 to just $1.25 by 19711.

The semiconductor industry has since grown to become a major economic force, increasing its contribution to US GDP by 265% between 1987 and 2011, outpacing all other major manufacturing sectors2.

During economic challenges between 2007-2011, while the overall US economy stagnated at 0.3% growth, the semiconductor industry continued growing at 5.2%2.

TI’s announcement represents a continuation of this critical government-industry relationship, with Commerce Secretary Lutnick explicitly connecting the investment to the administration’s semiconductor priorities.

2️⃣ Investment reflects intensifying US-China semiconductor competition