Texas Instruments inc. plans to construct two brand-new 300mm wafer fabrication facilities in Sherman, Texas, the U.S.

Construction of the two new fabrication facilities is set to begin in 2022, as the chip maker is struggling to keep up with soaring demand for automotive chips.  

The plan is part of TI’s long-term investments commitments, as global chip supply is forecast to run short well into 2022 and beyond.

For the short-term, the chip maker is now constructing one 300-mm wafer fab in Richardson, Texas, to complete it in the second half of 2022. TI also had acquired LFAB in Lehi, Utah from Micron to meet surging demand for automotive chip. The fab is expected to begin production in early 2023. 

“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,” said Rich Templeton, TI’s chairman, president and CEO.

“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,” he adds.   

The first new fab is expected to come online as early as 2025. TI said that the site is big enough to accommodate up to four fabs to meet demand over time, as semiconductor growth in electronics, particularly in industrial and automotive markets, is expected to continue well into the future

With the option to include up to four fabs, total investment potential at the site could reach approximately $30 billion and support 3,000 direct jobs over time.

The new fabs will complement TI’s existing 300-mm fabs which include DMOS6 in Dallas Texas, RFAB1 and the soon-to-be-completed RFAB2 in Richardson, Texas.