Texas Instruments (TI) has officially launched a massive $60 billion semiconductor plant in Sherman, Texas, marking a significant step in boosting domestic chip production in the U.S. Apple is one of the first companies to source chips from this facility, underscoring its strategy to reduce dependence on international suppliers.
The Sherman plant is just the beginning of a broader expansion, with TI planning to build four additional fabs as part of a seven-plant project across Texas and Utah. This new facility will focus on producing analog and embedded chips, which are crucial for managing power, processing signals, and handling sensors—components that are key to the functionality of Apple devices like iPhones.
Why These Chips Matter to Apple
While these chips are relatively inexpensive—costing only around 40 cents each—they are essential for the operation of devices such as the iPhone. By securing a domestic source of supply, Apple can mitigate risks related to tariffs and disruptions in the global supply chain. This move aligns with the announcement by President Trump in August 2025, imposing a 100% tariff on chips manufactured abroad.
In response, Apple CEO Tim Cook committed to increasing the company’s U.S. investment to $600 billion over the next four years, up from the initial $500 billion pledge. This additional investment will support TI’s plants in Sherman, as well as facilities in Richardson and Lehi.
A Step Toward Strengthening U.S. Chip Manufacturing
While Apple is known for its advanced processors found in devices like the iPhone and Mac, the Sherman facility focuses on older manufacturing processes, specifically those ranging from 45 to 130 nanometers. These analog chips play an indispensable role in controlling power, reading sensor data, and processing signals—tasks that remain crucial despite the simplicity of the chips themselves.
The Sherman plant will be powered entirely by renewable energy and is designed to recycle about half of its water usage. TI is also partnering with universities, community colleges, and the military to help build a skilled workforce in the region. The expansion is expected to generate up to 60,000 jobs in the U.S.
A Strategic Partnership for the Future
Apple’s decision to source chips from TI’s Sherman plant highlights the importance of ensuring a steady, reliable supply of essential technology. While Apple continues to innovate with cutting-edge processors, its devices depend heavily on analog chips, such as those now being produced in Sherman. This collaboration not only enhances Apple’s supply chain but also aligns with broader efforts in Washington to revive the U.S. semiconductor industry.
The move represents a long-term investment in securing the foundational technologies that power Apple’s products while also contributing to the strengthening of the U.S. tech industry.