Texas Instruments Completes First Sherman 300mm Wafer Fab — Driving the Future of Analog and Embedded Semiconductor Manufacturing

Texas Instruments (TI) has officially completed construction of its first 300mm wafer fab in Sherman, Texas, marking a major milestone in its multi-billion dollar investment to expand U.S. semiconductor manufacturing capacity. On May 20, 2025, TI confirmed that equipment installation has begun, and the site is being prepared for production — a key step toward enhancing global supply chain resilience and internal manufacturing control.

A $30 Billion Commitment to U.S. Semiconductor Capacity

The Sherman fab project, announced in 2021, is one of the largest manufacturing investments in the history of Texas Instruments. The plan includes up to four 300mm wafer fabs on site, with an estimated total investment of $30 billion. Once fully completed, the Sherman manufacturing campus is expected to generate 3,000+ jobs and significantly increase TI’s production of analog semiconductors and embedded processors.

“We’ve completed the first fab. The team is moving in, and we’re installing equipment,” said Mike Haggerty, TI Sherman site manager. “This marks the beginning of the next chapter for semiconductor manufacturing in Texas.”

Focus on Mature Node Semiconductor Production

The Sherman fab will specialize in mature process nodes (28nm and above), widely used in automotive, industrial, and consumer electronics applications. With the semiconductor industry facing ongoing global supply challenges, Texas Instruments’ focus on internal manufacturing of legacy nodes ensures stable, high-volume production for decades to come.

Expanding TI’s 300mm Fab Footprint Across the U.S.

The Sherman facility is just one component of TI’s broader vision. By 2030, Texas Instruments aims to operate at least six 300mm wafer fabs, including:

• RFAB2 (Richardson, TX) – Production began in 2022

• LFAB (Lehi, UT) – Acquired from Micron, started in 2023

• LFAB2 – A new fab next to LFAB, scheduled for 2026

• Sherman Fab 2–4 – One under construction, two more planned between 2026–2030

TI’s Internal Manufacturing Goals for 2030

TI is strategically reducing reliance on third-party foundries and OSATs by scaling internal operations:

• Over 90% of chip revenue from internal fabs by 2030 (up from 80% in 2020)

• 90%+ of packaging and testing to be done in-house (up from 60%)

• 12-inch wafer production to reach 80% of total output (up from 40% in 2022)

This long-term plan ensures better cost control, supply chain reliability, and technology independence.

Why 300mm Wafers Matter: Efficiency & Cost Advantage

Transitioning from 8-inch to 12-inch (300mm) wafers gives Texas Instruments a substantial competitive edge. Each 12-inch wafer yields approximately 2.3 times more chips, reduces fabrication cost by ~40%, and cuts assembly/test costs by ~20%. This scale advantage strengthens TI’s pricing power and enhances margins — critical in today’s competitive analog semiconductor market.

Market Fluctuations vs Long-Term Strategy

Although TI’s gross margin peaked at 70.2% in Q1 2022, it has since faced cyclical challenges and aggressive competition, particularly in Asia. Nevertheless, the company remains focused on long-term manufacturing independence and cost leadership. By expanding U.S.-based 300mm fab capacity, TI is preparing to recover market share and reinforce its dominant position in analog and embedded chip production.

Conclusion: Sherman Fab Ushers in New Era for U.S. Semiconductor Manufacturing

The completion of Texas Instruments’ Sherman fab is more than a factory opening — it’s a signal of TI’s unwavering commitment to localized manufacturing, supply chain control, and mature-node innovation.

For customers in automotive, industrial, and electronics sectors, TI’s strategic fab expansion means improved chip availability, lower long-term costs, and better product reliability.