Texas Instruments (TI) has decided to locate its next 300mm fab in Lehi, Utah, raising expectations that this will enhance TI's price competitiveness and supply chain management capabilities.

TI announced plans to build a new 300mm semiconductor wafer manufacturing plant (Fab) in Lehi, Utah on the 17th.

The new fab will be located next to TI's existing 300mm semiconductor wafer fab, LFAB, in Lehi, and upon completion, the two fabs will be integrated into a single fab.

“This new fab is part of TI’s long-term 300mm manufacturing roadmap to strengthen our in-house manufacturing capabilities and prepare us for anticipated customer demand over the next several decades,” said Haviv Ilan, TI’s executive vice president and chief operating officer and incoming president and CEO. “This new fab demonstrates TI’s commitment to the Utah region and will leverage Utah’s talented workforce to fuel our growth during this next significant period of momentum.” “With the semiconductor industry expected to see significant growth, particularly in the industrial and automotive electronics sectors, and the passage of the CHIPS Act, we believe this is the right time to expand TI’s investment in its internal manufacturing capabilities,” he said.

This $11 billion investment is the largest in Utah history. The Lehi fab expansion is expected to create approximately 800 additional TI jobs and thousands more indirect jobs. TI anticipates strengthening its partnership with the Alpine School District and will invest $9 million to provide diverse opportunities for students.

“Companies like TI continue to invest in Utah because of our world-class business environment and talented workforce,” said Utah Governor Spencer Cox. “TI’s new semiconductor fab will solidify Utah’s position as a global semiconductor manufacturing hub for generations to come.”

Lehigh boasts an optimal location, with skilled talent, a robust existing infrastructure, and a robust network. The new fab is expected to produce tens of millions of analog and embedded processing chips daily, which will be used in a wide range of electronic products.

The fab will be designed to meet the 'LEED Gold' standard, the highest level of the Leadership in Energy and Environmental Design (LEED) building certification system that evaluates the structural efficiency and sustainability of buildings.

The percentage of water that will be recycled will be approximately double that of the first fab in Lehi. Lehigh's advanced 300mm equipment and processes will contribute to reducing waste, water, and energy consumption used in a single chip.

The new fab is expected to break ground in the second half of 2023 and could begin production as early as 2026, and construction costs are included in TI's previously announced capital expenditure plan for manufacturing capacity expansion.

The second fab in Lehi will complement TI's existing 300mm fabs, DMOS6 in Dallas, Texas; RFAB1 and RFAB2 in Richardson, Texas; and its first fab, LFAB, in Lehi, Utah.

Meanwhile, TI is also building four new 300mm wafer fabs in Sherman, Texas.