Texas Instruments Chooses Sherman for New $30B Semiconductor Chip Site

At full build-out, the 4.7 million-square-foot semiconductor fabrication plant will be the largest electronics production facility in Texas and among the largest manufacturing plants of any kind in the U.S.

Dallas-based global semiconductor company Texas Instruments announced today that it plans to build up to four new manufacturing plants in Sherman. Construction of the first two is expected to begin next year.

The 300-millimeter semiconductor wafer fabrication plants—or fabs—could result in a potential $30 billion investment from TI. They could also support as many as 3,000 jobs once complete.

Sherman leadership said that the semiconductor fabrication plant will encompass 4.7 million square feet and at full build-out will be the largest electronics production facility in Texas. It will also be among the largest manufacturing plants of any kind in the U.S.

Production from the first fab is anticipated as early as 2025, according to the company. As the need for semiconductors continues to grow in the electronics industry, TI, which manufactures processing chips, plans to use the new North Texas site to meet demand. The company predicts the boom in demand—particularly in the industrial and automotive markets—will continue well into the future.

Will support customers’ demand in the coming decades

“TI’s future analog and embedded processing 300-mm fabs at the Sherman site are part of our long-term capacity planning to continue to strengthen our manufacturing and technology competitive advantage and support our customers’ demand in the coming decades,” Rich Templeton, TI’s chairman, president, and CEO, said in a statement. “Our commitment to North Texas spans more than 90 years, and this decision is a testament to our strong partnership and investment in the Sherman community.”

Locally, TI has an existing 300-mm fab in Dallas (DMOS6) and one that’s soon to be completed in Richardson (RFAB2). The company also recently acquired a plant in Lehi, Utah (LFAB).

RFAB2 and LFAB are expected to begin production in the second half of 2022 and early 2023, respectively.

In September, Dallas Innovates reported that the semiconductor leader was considering Sherman as a finalist site for a new chip plant that could employ 800 to 1,000 people, but it was in the midst of a competitive selection process. At the time, a company spokesperson said that given the long-term trend of semiconductors, TI has a roadmap to strengthen its manufacturing and technology competitive advantage for the next 10 to 15 years.

Project is big news for Sherman

The potentially multi-billion dollar manufacturing project is big news for Sherman, as TI announced last year that it was closing an existing factory there.

In October, Sherman City Council members approved an incentive package to win the deal, which included property tax cuts, a more than 500-acre project site, and deals on tax infrastructure and economic incentives.

At the time, Sherman Mayor David Plyler said it would be huge for the city, garnering “the attention of people like Elon Musk.”

“It’s going to be big for Texas, big for the South, and we’re going to be known as the high tech part of the southern corridor,” he said.

TI is one of the largest employers in Texas, and the only semiconductor company headquartered in the state. With a 91-year history here, the company remains committed to the area.

In a statement, Texas Governor Greg Abbott commended TI for its “Made in Texas” brand and continued “legacy of innovation in the Lone Star State.”

“In addition to bringing billions of dollars in capital investment and thousands of new jobs to North Texas, this historic investment will keep Texas a national leader in semiconductor manufacturing while also strengthening the domestic semiconductor supply chain,” Abbott said. “I thank TI for choosing Sherman as the site for up to four new semiconductor manufacturing facilities as we work together to keep Texas a global hub for innovation in advanced technology and manufacturing.”

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