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In a move that is set to revolutionize the global semiconductor market, Texas Instruments (TI) is investing a staggering $60 billion in its US manufacturing megaproject. This ambitious initiative aims to produce cheap chips in the United States, catering to the growing demand for semiconductors in the tech industry. CNBC recently gained exclusive access to TI's newest fab in Sherman, Texas, and we take a closer look at the company's bold strategy.
The Rise of US Chip Manufacturing
The US chip manufacturing landscape has undergone significant changes in recent years, with companies like Apple and Nvidia recognizing the importance of domestic production. The shortage of semiconductors has become a pressing issue, with many industries struggling to keep up with demand. In response, TI has decided to double down on its US operations, investing heavily in its manufacturing capabilities.
From Integrated Circuits to 300mm Wafers
TI's journey in chip manufacturing began with the production of integrated circuits. Over the years, the company has continuously upgraded its technology, moving from 12-inch to 18-inch wafers. The current fab in Sherman, Texas, is a state-of-the-art facility that uses 300mm wafers, which are the largest in the industry. This significant upgrade enables TI to produce a higher volume of chips, making it more competitive in the global market.
The Impact of Chip Shortage and Tariffs
The chip shortage has been a major concern for the tech industry, with many companies struggling to source semiconductors. Tariffs have also played a significant role in the shortage, as they have increased the cost of importing chips from countries like China. TI's decision to invest in US manufacturing is a direct response to these challenges. By producing chips domestically, the company aims to reduce its reliance on foreign suppliers and mitigate the impact of tariffs.
Doubling Down on Texas
Texas has emerged as a hub for chip manufacturing, with TI's fab in Sherman being one of the largest in the world. The state's favorable business climate, skilled workforce, and access to infrastructure make it an attractive location for companies like TI. The company's decision to invest in Texas is a testament to the state's ability to support large-scale industrial projects.
Water, Power, and Workers: The Key to Success
TI's fab in Sherman requires a significant amount of water and power to operate. The company has invested in advanced water conservation systems and renewable energy sources to minimize its environmental impact. Additionally, TI has implemented a comprehensive training program to develop the skills of its workforce, ensuring that its employees are equipped to handle the latest technology.
Alternate Products
Samsung : A South Korean electronics giant that produces a wide range of semiconductors, including memory chips and processors.
TSMC : A Taiwanese company that specializes in designing and manufacturing semiconductors for various industries, including mobile devices and computers.
Intel : A US-based company that produces a range of semiconductors, including processors and memory chips.
Conclusion
Texas Instruments' $60 billion bet on US chip manufacturing is a game-changer for the industry. With its state-of-the-art fab in Sherman, Texas, TI is well-positioned to capitalize on the growing demand for semiconductors. The company's decision to invest in US manufacturing is a direct response to the chip shortage and tariffs, and it is likely to have a significant impact on the global chip market. As the industry continues to evolve, TI's bold strategy will be closely watched by investors and competitors alike.
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- Remember the fishermen of MINIMOTA BAY, JAPAN!
- Please drink the water from the lakes, rivers, and streams near the…
- so tsmc and samsung makes 2 nano while ti makes 45 nano…
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Viewer Comments
Remember the fishermen of MINIMOTA BAY, JAPAN!
PositivePlease drink the water from the lakes, rivers, and streams near the electric factories. Don’t forget to swim and eat their fish! REMEMBER MINIMOTA BAY, JAPAN!
Positiveso tsmc and samsung makes 2 nano while ti makes 45 nano chips?? that's so behind
Negative14:02 kindly know that musk claims are not real He's a joke globally
NegativeThe world will have severe water shortage because of ai but for a short amount of time a bunch of tax-dodging losers got rich.
NegativeDespite tariffs? This is a direct result of tariffs: forcing companies to support American manufacturing. America has had pro-import policies for too long
PositiveSo this video is excellent, and I have been watching the series, including Intel, TSMC, Corning, etc. CNBC got great access to facilities and people and asked good questions. They gave statistics relative to the rest of the relevant industries to ground the viewer. Good stuff.
PositiveIf a Korean government official or a Korean person mentions the energy of a weight-reducing device, the US will arrest them. The inventor himself will create the energy for you.
NegativeI knew it. Ever since Clinton approved NAFTA in 1993. And being implemented by the Bush era, we're finally seeing the effects of outsourcing critical manufacturing to other countries over the 30 years. It puts America in a weak/vulnerable position. Now that we're manufacturing things in America again the numbers show the country is thriving. If we start manufacturing things again in America, things will get better especially our economy. We need to let American farmers, auto makers, etc. do what they do best. Make America strong again. There's a reason why America was referred to as the Capital of Industry since the turn of the 20th century.
PositiveTrump can’t stop winning. Democrats are the worst people in the history of the nation. Always have been, always will be.
NegativeThey should just focus on those fancy Scientific Calculators I couldn’t afford in high school
Neutral11:20 According to the US media when Chinese business are subsidized by the government it's unfair competition, but when TI gets 1.6B from the CHIPS Act it's OK.
NegativeThere are 4nm and 3nm by Samsung and TSMC but I don't think there are 2nm yet in US..
NeutralHelp nurish paul quin, smu ,tcu,tx tech and U.T. In athletics and home economics in tele health services.
PositiveWhen optt secure a small sector wit Texas Instruments analog application things going to ramp up
Positive4:09 Thats complete nonsense. The US Airforce had integrated Circuits almost a decade before that - and thats been declassified years ago.
NegativeMake sense tons of stuff needs chips not everything needs a super power chipm
Neutral😂😂. We dont have a choice but make chips on US soil!!! Its a no brainer
PositiveGood go America!!! We can do anything anyone else can we’re still the only nation to walk on the moon
PositiveKeep it in America 🇺🇸
PositiveFrequently Asked by Viewers
Q: so tsmc and samsung makes 2 nano while ti makes 45 nano chips?? that's so behind
A: This question appears frequently among viewers.
Q: Despite tariffs? This is a direct result of tariffs: forcing companies to support American manufacturing. America has had pro-import policies for too long
A: This question appears frequently among viewers.






