Texas Instruments Bets $60B to Crush U.S. Chip Competition—Wall Street Still Yawns
Semiconductor giant Texas Instruments just dropped a $60 billion mic on the industry—the largest investment in U.S. chip manufacturing history. This moonshot targets total domination of America's semiconductor supply chain.
Why it matters: While crypto miners fight over scraps of legacy chips, TI's vertical integration play could redefine hardware economics. The move strategically undercuts both Asian foundries and domestic rivals chasing AI hype.
Between the lines: That $60B could've bought 15% of Bitcoin's circulating supply—instead, it's going toward analog chips that'll power everything from your smart fridge to military drones. Sometimes boring wins.
Bottom line: In a world obsessed with AI narratives, TI just made the ultimate contrarian bet on physical infrastructure. The crypto parallels? Build the foundational tech, and the speculative applications will follow.
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The Sherman site will eventually include four 300mm wafer fabrication plants. The first fab, SM1, is expected to begin production in 2025. SM2 is structurally complete, while SM3 and SM4 are in early planning stages. TI is also expanding in Lehi, Utah. Together, these facilities are designed to meet growing demand for analog and embedded processing chips used in sectors such as automotive, industrial, and consumer electronics.
To support the effort, TI will receive up to $1.6 billion in direct CHIPS Act funding, plus an estimated $6 billion to $8 billion in tax credits. An additional $10 million will go toward workforce training. TI aims to produce more than 95% of its chips in-house by 2030.
Domestic Chip Capacity Is Expected to Triple
For shareholders, the move reflects a long-term focus. While capital expenditures are expected to rise, TI is building capacity ahead of demand to mitigate supply risk and enhance cost efficiency. The investment may also help solidify relationships with key customers like Apple (AAPL), Ford (F), and Medtronic (MDT).
TXN trades at $198, and is up over 7% year-to-date. One WOULD expect that TXN stock would jump significantly in the wake of the announcement, but the needle moved upwards just 0.33%.
This manufacturing push arrives as the U.S. seeks to strengthen its semiconductor supply chain. According to the Semiconductor Industry Association, domestic chip capacity is expected to triple between 2022 and 2032, with over 80 new projects launched since the introduction of the CHIPS Act.
Takeaway for Investors
TI’s scale, internal manufacturing strategy, and focus on foundational chips give it a durable edge. The buildout is expected to create over 60,000 jobs across Texas and Utah. With production ramping up in phases, the company is poised to increase its output while maintaining a disciplined approach to capital deployment.
For investors, the $60 billion investment reflects a clear shift toward long-term supply chain strength, customer alignment, and manufacturing leadership.
Is TXN a Good Stock to Buy?
According to The Street’s analyst, Texas Instruments boasts a Moderate Buy rating. The average TXN stock price target is $185.95, implying a 6.25% downside.
