In a deal billed as the largest economic investment in Utah history, global chipmaker Texas Instruments plans to invest $11 billion to expand its 300-millimeter semiconductor fabrication plant in Utah with a secondary fabrication facility as part of manufacturing plans including a $30 billion massive chipmaking campus in Texas.
The Dallas-based company, banking on the future need for semiconductor chips, told investors it plans to double its annual spend to build U.S. chipmaking plants through 2025 to help supply its customers in the decades to come. This expansion in Utah falls in line with those plans, with the secondary facility expected to bolster the company's chipmaking capabilities in Lehi, Utah, a municipality about 28 miles south of Salt Lake City.
"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 [Texas Instrument]'s future," Haviv Ilan, the company's executive vice president and chief operating officer, and incoming president and chief executive officer, said, in a statement.
He added that "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 Salt Lake City suburb was chosen because of its access to skilled labor, existing infrastructure and a strong network of community partners, company officials said. The new plant will manufacture tens of millions of analog and embedded processing chips daily, which will supply electronics throughout the globe.
Upon completion, which is expected as early as 2026, the two Lehi plants are expected to operate as one fabrication facility. The existing plant was acquired from a rival for $900 million in mid-2021.
This deal marks Utah's largest economic investment in the state's history, according to Texas Instruments. In all, the plant is expected to create about 800 new jobs. Texas Instruments also plans to partner with the Alpine School District and invest $9 million to help provide opportunities to students.
Gov. Spencer Cox said companies like Texas Instruments continue to invest in Utah because of "our world-class business climate and exceptional workforce," with this investment solidifying Utah "as a global semiconductor manufacturing hub for generations to come."
Utah awarded Texas Instruments with a post-performance tax reduction on the new semiconductor plant through the state's Economic Development Tax Increment Financing program. The company could receive up to 30% of the additional state taxes it would pay over the 20-year life of the agreement, which is expected to total more than $111 million, according to state officials.
Each year Texas Instruments meets the criteria in its contract with the state, it will qualify for a portion of the total tax credit.
The new Texas Instruments facility is designed to be LEED Gold certified, with the ability to recycle water at nearly double the rate of the existing plant. Construction is scheduled to begin in the second half of 2023.
This adds to Texas Instruments' four existing plants, with one in Dallas, two in Richardson, Texas, and one in Lehi. Four additional fabrication plants are being built in Sherman, Texas, north of its Dallas-Fort Worth facilities. Globally, Texas Instruments has a presence in more than 30 countries with about 33,000 employees throughout the world.