Apple will make chips at Texas Instruments’ $60 billion U.S. project

When Texas Instruments announced Megaproject of $ 60 billion in July, it was a bold bet that companies would want to produce basic microchips on the US territory. In August, Apple promised to do this.

At the same oval office press conference, where President Donald Trump announced a 100% tariff from companies that do not produce in the United States, Apple CEO Tim Cook committed $ 600 billion for the next four years from an original $ 500 billion announcement in February.

Cook said that some of these expenditures will continue to make “critical basic semiconductors” for iPhones and other devices in the new chip fabricated facilities in Utah and Texas Instruments and Texas.

In July, CNBC was the first news organization of Ti to see the interior of the newest Fab in Texas, Sherman. There, full production will begin until the end of 2025. One of the seven new factories.

Although Texas Instruments do not make the world’s most advanced chips, its basic components are located almost everywhere from smartphones to graphic processing units that give power to productive AI.

Ti’s Technology and Production Senior Vice President Mohammad Yunus said, “If you have a battery on the wall or if there is a cable, you probably carry multiple TI chips,” he said.

However, only one month after the announcement of the 60 billion dollar project, the shares fell by 13% after the weak guidance and tariff concerns that emerged during the July 23 call call.

“The last customers of the concern. As after the tariff uncertainty, they don’t know what to expect. Are stocks?” Stacy Rasgon said, Bernstein Research Senior Analyst.

After calming the uncertainties of the tariff, it is seen that the demand will remain high. Nevertheless, the stocks recovered in August.

“I would position them as the winner of Timothy Arcuri, General Manager of UBS. He said. Arcuri said Ti will allow the US documentary rivals to reduce the pricing of Taiwan -made chips.

However, Ti’s chips market is not a guarantee. TI, in 2020 after having difficulty in keeping up with the demand during the shortage of chips Arcuri, Ti’s share in the analog market “fell from a cliff”, he said. According to UBS, it fell from 19.8% in 2020 to 14.7% in 2024.

Ti’s Megaprojective of 60 billion dollars includes four Fables in Sherman, Texas, one in Richardson, one in Texas and both in favor of Utah. In a statement to CNBC, the new Fables will give five times the capacity it has today.

Arcuri, “the share of the share of re -won and the request of the withdrawal of the fact that they are making a great bet.” He said. “If you don’t regain this share, it’s hard to justify to build so much capacity.”

According to Arcuri, each TI chip costs about $ 0.40, but they play important supportive roles for the world’s most advanced technologies. New partnership with NvidiaFor example, Ti develops a chip to increase productivity in power hungry data centers.

In 2009, TI made another brave movement to help reduce the cost of its chips. The world’s first 300 millimeter fab opened for analog chips, re -aiming a memory Qimonda After the bankruptcy of the financial crisis.

Arcuri said, “This was the catalyst for Ti to have such a cost advantage.” He said.

Yunus, the new wafer dimension, gives “tremendous cost efficiency” because 300mm, 2.3 times more chips against 200mm wafer “can fit.” He said. Ti was Closing and selling some of 200 mm fabsAnd all seven new fabs will produce 300 mm wafers.

Ti told CNBC that the country is the largest analogue and buried semiconductor manufacturer. Chips every year. Approximately 60% of revenues come from customers US -basedChina is about 20%.

In a statement to CNBC, approximately 75% of TI’s capital expenditures take place in the USA, but also make chips abroad abroad in Fabs in Germany, Japan and China. Mexico, Taiwan, Philippines and Malaysia testing and assembly, where he spends $ 3 billion Two new sitesOne of them is currently in production.

Yunus said that the global footprint of TI is currently a benefit of “dynamic state of tariffs.

“Our production in 15 different fields provides a position to support our customers in any political or economic environment, wherever they are.” He said.

Although the TI intends to build new sites in the international arena, Sherman settled in Texas. In the small city 65 miles north of Dallas, it has a population of only 50,000 people. It is also home to a Globalwers factory. The Taiwan -based company produces bare silicone wafers with chips, including TIs.

Sherman Mayor Shawn Teamann said the city is now the center of “Silicon Prairie’s center”.

Teamann’s grandfather In the 1950s, he worked with Kilby in TI. Ti first came to Sherman in 1966, but when he planned to close his old 150mm Fab, he convinced the city Ti with incentives such as tax cuts and water reductions.

The plan worked and in 2021, TI announced that it would stay in Sherman. New 300mm Fab Campus. Now, the first of four 300mm Fabs was completed in Sherman. Teamann, the 300mm project has been announced in 2021 since the city’s population growth rate has increased by more than twice, he said.

As for federal support, ti $ 1.6 billion chips law financing and something 35 % Investment Tax Loan Trump’s great bill was passed in July.

At the state level, gov. Greg Abbott has long offered incentives to companies that want to build in the state from low taxes to the Texas Cips Law of $ 1.4 billion in 2023.

Samsung has been the other chip giant in Texas since 1996. South Korean company 17 billion dollars Advanced chip Fab. Where is this Apple– Amazon And AMD Design most of the chips. Among other chipset companies in Texas, Infineon, NXP, X-Fab– Micron– Globalfoundiesand vehicle supplier Applied Materials.

Making chips takes a tremendous amount of water and approximately one quarter Texas in drought.

Fortunately, Sherman has water rights to Lake Texoma nearby.

Teamann, “This was about to be entitled more, to increase our production, and to provide serial water to run a semiconductor facility.” He said.

Ti will use about 1,700 gallon water per minute when the new Sherman Fab is completed, and with plans to recycle at least 50% of it.

CHIP production is also hungry for power, so it helps Sherman to have an electrical power plant lately. Increasing capacity. TI’nın new Sherman Fab will work on completely renewable energy, Yunus said, 300 mm of sap of chipset helps energy efficiency, he added.

“You use almost the same amount of energy, but you produce 2,2 to 2.3 times more chips,” he said.

Texas’s unique independent grill It greatly cuts the state from borrowing in state lines. In 2021, this grill failed during an extreme winter storm, It causes at least 57 deaths And stop production in chip manufacturers such as Samsung and NXP. Ti, CNBC “critical transactions” continued, he said.

Yunus said, “We built surplus on this facility,” he said. “We also have more than one transmission line that feeds power to the site. In addition, we have large diesel storage tanks and generators who can continue to give power to the site for a few days.”

High qualified chip engineers are another scarce resource. A talent pipeline caused by the dramatic decrease of US global semiconductor production. In 1990, the United States entered only 10% in 2022 from obtaining 37% of the market. Semiconductor industry association.

However, TI has developed partnerships with various universities, community colleges and army to fill the talent gap required to fill the roles in Sherman Fab.

Arcuri, “There are many young people moved to the region. In fact, I think it will be easier to get talents 5 to 10 years ago.” He said.

With a full $ 60 billion project, Ti said that it expects 60,000 USA business, but the company could not give an expected completion date when requested.

“It’s hard to predict exactly when it will get up.” He said. “We hope we will continue to build quite quickly, but this really depends on the market.”

Watch the video for a depth look at the TI’s first completed Fab in Sherman: https://www.cnbc.com/video/2025/08/22/Apple-will-will-bips-bips-at-texas-60-billion-h