Texas Instruments Incorporated (TXN) Unveils Historic $60B U.S. Chip Expansion Plan

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Texas Instruments Incorporated (NASDAQ:TXN), a leading U.S.-based semiconductor company, designs and manufactures analog and embedded processing chips used across sectors like automotive, industrial, and consumer electronics. In July 2025, TXN announced a landmark $60 billion investment to expand its U.S. semiconductor manufacturing capacity, the largest such investment in U.S. history. The expansion will focus on mega-sites in Texas and Utah, with Sherman, Texas, receiving up to $40 billion for four fabrication plants. This initiative is expected to create over 60,000 jobs and significantly boost the production of critical semiconductors essential for modern technologies, from electric vehicles to data centers.

The expansion aligns with growing global demand for foundational chips and U.S. government efforts to strengthen domestic semiconductor production and supply chain resilience. Texas Instruments Incorporated (NASDAQ:TXN)’s strategy reflects its long-term commitment to scaling manufacturing and driving innovation as digital transformation accelerates across industries.

Texas Instruments Incorporated (TXN) Unveils Historic $60B U.S. Chip Expansion Plan

A technician in a pristine lab, focused on designing a new semiconductor chip.

Despite this growth, Texas Instruments Incorporated (NASDAQ:TXN)’s Q2 2025 earnings call revealed a note of caution. While the company posted $4.45 billion in revenue, management warned of potential volatility due to geopolitical tensions and tariff risks. Analysts noted that some recent demand may have been pulled forward in anticipation of trade changes, leading to tempered expectations for Q3.

While we acknowledge the risk and potential of TXN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TXN and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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