Texas Instruments Launches $11B Chip Plant

LFAB2 is Texas Instruments’ second facility in Lehi, Utah. Image courtesy of Texas Instruments

Texas Instruments has broken ground on its second 300-mm semiconductor fabrication plant in Lehi, Utah. The new facility, LFAB2, will manufacture analog and embedded processing chips.

The $11 billion investment, announced in February, is the largest in the history of the state. Upon its anticipated opening in 2026, LFAB2 will function alongside the existing LFAB1 facility to manufacture tens of millions of chips per day. The new factory will employ approximately 800 workers.

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Located at 4000 N. Flash Drive, the Utah fabs are on a 283-acre lot in the Silicon Slopes, CommercialEdge data shows. Downtown Salt Lake City is approximately 29 miles north of the site, while downtown Lehi is 4 mile south.

LFAB1 features more than 275,000 square feet of clean room space, 7 miles of overhead delivery systems and sustainable designs to reduce waste, energy usage and water consumption. It began production in December 2022 after being acquired from Micron Technology in 2021 for $90 million.

Designed to achieve a LEED Gold-certification, LFAB2 will be powered entirely by renewable energy. Sustainable features of the facility are anticipated to reduce waste and energy consumption and recycle water at twice the rate of LFAB1.

The world of U.S. fabs

TI is also in the process of building four 300-mm wafer fabs in Sherman, Texas. Chip production at the Lone Star State facilities, marking a $30 billion investment, is anticipated to begin in 2025.

Receiving support from the CHIPS and Science Act and its $280 billion budget, semiconductor fabrication plants and manufacturing facilities continue to be some of the largest contributors to industrial real estate development and related investment activity nationwide.

One of the most sizable projects is Micron Technology‘s $100 billion memory ‘megafab’ coming to Syracuse, New York, representing the largest private investment ever made in the state. Groundbreaking is expected next year.