TI bets big on Utah: $11B factory and 800 new jobs

Brice Wallace

Texas Instruments Inc. will build a semiconductor wafer fabrication plant in Lehi in what it described as the largest economic investment in Utah history.

The $11 billion project will create roughly 800 additional information technology jobs as well as thousands of indirect jobs, it said in announcing the project last week.

The plant, which will produce 300-millimeter semiconductor wafers, will be built adjacent to the company’s existing fab facility. When completed, the two Lehi operations will operate as a single fab.{mprestriction ids="1,3"}

Dallas-based Texas Instruments in mid-2021 bought the more than 2 million-square-foot existing facility for $900 million in cash from Micron Technology, which at one time produced the wafers as part of a joint venture called IM Flash Technologies.

TI is a global semiconductor company that designs, manufactures, tests and sells analog and embedded processing chips for markets such as industrial, automotive, personal electronics, communications equipment and enterprise systems.

“This new fab is part of our long-term, 300mm manufacturing roadmap to build the capacity our customers will need for decades to come,” Haviv Ilan, TI executive vice president and chief operating officer, and incoming president and chief executive officer, said in announcing the Lehi project.

“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 TI’s future. 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 company said Lehi is “an ideal location because of its access to skilled talent, robust existing infrastructure and strong network of community partners. The new fab will manufacture tens of millions of analog and embedded processing chips daily that will go into electronics everywhere.”

Construction is expected to start in the second half of 2023, with production as early as 2026. The company said it will complement its existing 300mm plants, including one in Dallas; two in Richardson, Texas; and the one in Lehi. The company is also building four new 300mm wafer fabrication operations in Sherman, Texas.

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

The day of the company’s announcement, the Governor’s Office of Economic Opportunity (Go Utah) board awarded TI a tax credit incentive for the project.

“We’re excited Texas Instruments has decided to build a second factory in Lehi,” said Ryan Starks, Go Utah’s executive director. “This new factory will bring significant capital investment to the state along with hundreds of high-tech jobs. This is a big win for the state and Lehi City.”

Go Utah said the project is expected to generate new total wages of about $2.44 billion over 20 years and new state tax revenue of $111.45 million during that time. The company’s incentive is for 30 percent of that tax revenue amount, which calculates to about $33.4 million.

“The federal government recognized at the front end of the pandemic that our country’s reliance on overseas semiconductor manufacturing is a national security issue,” said Scott Cuthbertson, president and CEO of the Economic Development Corporation of Utah. “This project is the direct result of significant investment in strengthening our country’s supply chain. Texas Instruments’ commitment to investing in Utah will have a transformational impact on Lehi and Utah’s manufacturing industry.”

Lehi Mayor Mark Johnson said the city is pleased to have the company as a community partner. “TI has brought great opportunities to our city, our state and our country at a critical time in the semiconductor industry,” Johnson said. “We are excited for our relationship to continue with TI regarding this expansion.”

U.S. Sen. Mitt Romney, R-Utah, said the new Lehi project was made possible by the CHIPS and Science Act, which Romney supported. The act is designed to advance and solidify U.S. leadership in scientific and technological innovation through increased investments in the discovery, creation and manufacturing of technology critical to national security and economic competitiveness.

“Utah continues to be a great place to do business, and today’s announcement further proves that,” Romney said after the company announcement. “I was proud to support the legislation that made this historic investment in our state possible, which will strengthen our country’s manufacturing capabilities and help break U.S. dependence on China for microchips.

“Texas Instruments’ new facility will also bring hundreds of jobs to Lehi and the surrounding area. We must continue to promote innovation, foster scientific talent, and expand U.S. research if we are going to compete with China on the world stage, and today’s announcement is a strong step in the right direction.”

TI said the plant will be designed to meet one of the Leadership in Energy and Environmental Design building rating system’s highest levels of structural efficiency and sustainability, known as LEED Gold. Plans include recycling water at nearly double the rate of the existing Lehi facility. Advanced 300mm equipment and processes in Lehi will further reduce waste, water and energy consumption per chip, it said.

The company also said it “looks forward to strengthening its partnership with the Alpine School District and will invest $9 million to improve student opportunities and outcomes.”

Micron put the existing Lehi facility up for sale in early 2021, saying it wanted cease production of its 3D XPoint memory chips that it had developed in partnership with Intel Corp. in the IM Flash joint venture.

Micron and Intel built the facility in 2006 and each initially contributed about $1.2 billion to establish IM Flash. Micron in 2018 announced plans to buy out Intel’s position in IM Flash and take control of the Lehi operation, and IM Flash became a Micron wholly owned subsidiary.

When TI bought the facility, it said it would convert it to manufacture its 300mm wafer products as well as 65-nanometer and 45-nm production for analog and embedded processing products.

Founded in 1930, TI has about 31,000 employees, including about 13,000 in the Americas, 16,000 in Asia-Pacific and about 2,000 in Europe. It has 15 manufacturing sites worldwide and makes about 80,000 products for over 100,000 customers. The company had $20.03 billion in revenue in 2022.{/mprestriction}