By Mark Tullis | Posted - Feb 15th, 2023

 

 

 

 

Texas Instruments Announces $11 Billion Investment in Semiconductor Fab in Lehi

Texas Instruments today announced it plans to build a 300-millimeter semiconductor wafer fabrication plant (or fab) in Lehi, Utah. The new fab will be located next to the company's existing 300-mm semiconductor wafer fab in Lehi, known as LFAB. This fab employs around 1,100 people. Once completed, TI's two Lehi fabs, will operate as a single fab, employing approximately 1,900 people together. The new fab will manufacture tens of millions of analog and embedded processing chips daily that will go into electronics everywhere.

"This new fab is part of our long-term, 300-mm manufacturing roadmap to build the capacity our customers will need for decades to come," said Haviv Ilan, TI executive vice president and chief operating officer, and incoming president and chief executive officer. "Our decision to build a second fab in Lehi underscores our commitment to Utah and is a testament to the talented team there who will lay the groundwork for another important chapter in TI's future. With the anticipated growth of semiconductors in electronics, particularly in industrial and automotive, and the passage of the CHIPS and Science Act, there is no better time to further invest in our internal manufacturing capacity."

The landmark $11 billion investment marks the largest economic investment in Utah history and is expected to create approximately 800 high-paying TI jobs as well as thousands of indirect jobs. As part of this initiatve, TI will strengthen its partnership with the Alpine School District by investing $9 million to improve student opportunities and outcomes.

"Companies like Texas Instruments continue to invest in Utah because of our world-class business climate and exceptional workforce," said Utah Gov. Spencer Cox. "TI's new semiconductor fab will solidify Utah as a global semiconductor manufacturing hub for generations to come."

TI is deepening its commitment to its Lehi facility because of the skilled talent, well-established infrastructure, and strong network of community partners in Utah's tech sector.

“This is a huge day for team Utah,” said Governor Cox during the announcement at the state Capitol. Other dignitaries and TI executives were present at this celebrated announcement event including Texas Instruments’ CEO Haviv Ilan and Rep. Burgess Owens.

“These are high-paying jobs,” said Ilan at the Capitol announcement event, with an average salary of $110,000.

In total, the project is projected to produce over $2.4 billion in wages and over $111 million in new state tax revenue over 20 years, according to estimates from the governor’s office.

The fab will be designed to meet one of the Leadership in Energy and Environmental Design (LEED) building rating system's highest levels of structural efficiency and sustainability: LEED Gold. Plans include recycling water at nearly double the rate of the existing Lehi fab, an important consideration given Utah's multi-year drought. Advanced 300-mm equipment and processes in Lehi will further reduce waste, water and energy consumption per chip.

Construction of the new fab is expected to begin in the second half of 2023, with production as early as 2026. The cost of the new fab is comprehended in TI's previously announced capital spending plan to expand manufacturing capacity and will complement TI's existing 300-mm fabs, which include DMOS6 (Dallas), RFAB1 and RFAB2 (both in Richardson, Texas), and LFAB (Lehi, Utah). TI is also building four new 300-mm wafer fabs in Sherman, Texas.

 
Mark Tullis
About the Author

Mark Tullis - Mark is Co-founder and Editor of TechBuzz News. Born and raised in Ogden, Utah, Mark attended Weber State, Brigham Young, and Tufts Universities. He has been involved in tech, media, publishing and education since the 1980s. He enjoys spending time with his family, hiking, and playing the saxophone.

 

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