Texas Instruments Accelerates 12-Inch Fab Expansion with Sherman Site Commencing Production

DALLAS, April 9, 2025 — Texas Instruments (TI) has officially initiated production at its first 12-inch semiconductor wafer fab in Sherman, Texas, marking a pivotal milestone in its $30 billion multi-fab campus project announced in 2021. This facility, designated SM1, leverages advanced automation and sustainable practices to produce analog and embedded processing chips for automotive, industrial AI, and edge computing applications.

Key Developments:

1. Manufacturing Scale-Up with Geopolitical Resilience
   
   The Sherman campus, eventually housing four fabs, aims to address global supply chain vulnerabilities. TI’s internal manufacturing now supports over 95% of its high-volume products, reducing reliance on external foundries. The SM1 fab utilizes 45nm-130nm nodes optimized for cost-sensitive industrial applications, while newer facilities under construction will adopt finer nodes for AI-optimized embedded processors.

2. Energy Efficiency and Sustainability Leadership
   
   Aligned with TI’s net-zero roadmap, the Sherman fab operates on 100% renewable energy and achieves a 90% waste recycling rate. Its LEED Gold-certified design integrates water reuse systems, cutting freshwater consumption by 40% compared to legacy fabs.

3. Synergy with U.S. CHIPS Act Funding
   
   TI secured 6−8 billionin CHIPS Actsub sidiesand taxcreditsin 2024, acceleratingits 12−inch capacity expansion.This funding supports TI’s 6−8 billionin CHIPS Actsub sidiesand taxcreditsin 2024,acceleratingits 12−inch capacity expansion.This funding supports TI’s 10 billion investment in Sherman and Lehi, Utah fabs, positioning the company to capture 25% of the global analog semiconductor market by 2026715.

4. Automotive and Industrial AI Focus
   
   Despite oversupply in low-end automotive PMICs, TI’s new Embedded Processing Unit (EPU) series, manufactured at Sherman, targets AI-driven predictive maintenance and autonomous systems. Early adopters report 35% latency reduction in real-time sensor fusion tasks for EV battery management.

Technological Differentiators:

• 3D Heterogeneous Integration: Collaborating with TSMC’s CoWoS advanced packaging, TI’s Sherman-produced chips achieve 50% higher thermal efficiency for data center AI accelerators.

• In-Fab Cybersecurity: Hardware-rooted trust modules are embedded during wafer testing, addressing NIST’s post-quantum cryptography standards for industrial IoT.

Market Impact:

Analysts project TI’s 12-inch expansion will reduce lead times for automotive MCUs by 30% in Q3 2025, alleviating bottlenecks caused by EV market volatility. Meanwhile, TI’s GaN/SiC power ICs, produced at Lehi fabs, are gaining traction in renewable energy systems, with orders up 18% YoY.