When Texas Instruments announced in December 2025 that it would move forward with new semiconductor manufacturing facilities in Texas, the decision reflected more than a corporate expansion plan. It was a direct outcome of a deliberate policy choice made by President Joe Biden to reestablish the United States as a global center for semiconductor manufacturing through the CHIPS and Science Act.
What to Know…
President Joe Biden’s CHIPS and Science Act fundamentally changed the economics of semiconductor manufacturing, making large-scale U.S. investment viable after decades of offshoring.
Texas Instruments’ December 2025 decision to build new manufacturing facilities in Texas is a direct example of how federal incentives and long-term policy certainty translate into real domestic production and jobs.
Expanding U.S.-based chip manufacturing strengthens both economic competitiveness and national security, particularly for industries that rely on analog and embedded semiconductors.
After decades in which U.S. chip production steadily migrated overseas, the Biden administration’s approach marked a clear break from the past. Texas Instruments’ announcement shows how that shift translated into real investment, real jobs, and real manufacturing capacity at home.
President Biden’s Strategy to Rebuild U.S. Semiconductor Manufacturing
From the beginning of his presidency, Joe Biden framed semiconductors as both an economic and national security priority. Chips are the backbone of modern life, embedded in cars, power systems, defense technologies, medical devices, and clean-energy infrastructure. Yet by the early 2020s, the United States produced only a small share of the world’s semiconductors.
The CHIPS and Science Act, signed into law in 2022, was the centerpiece of Biden’s response. The legislation combined direct manufacturing incentives, long-term tax credits, and federal investment in research and workforce development. Its purpose was to make the United States competitive again as a place to build and operate semiconductor manufacturing plants.
Just as important as the funding itself was the policy signal. For the first time in decades, semiconductor companies could plan large-scale U.S. investments knowing that federal support would be sustained, predictable, and tied to domestic production rather than offshore expansion.
Why the CHIPS Act Changed Corporate Decision-Making
Semiconductor manufacturing is uniquely capital-intensive. A single fabrication facility can cost tens of billions of dollars and take years to complete. Before the CHIPS Act, companies routinely chose to build abroad because foreign governments offered aggressive subsidies while the United States largely stayed on the sidelines.
President Biden’s CHIPS Act changed that dynamic.
Federal grants helped offset construction costs, investment tax credits improved long-term financial viability, and workforce programs ensured access to skilled labor. Together, these measures narrowed the cost gap between U.S. and overseas manufacturing and reduced the risk of building at home.
For companies like Texas Instruments, this shift mattered. The CHIPS Act did not force investment; it made domestic investment make sense.
Texas Instruments’ December 2025 Announcement
On Wednesday, December 17, 2025, Texas Instruments announced plans to construct new semiconductor manufacturing facilities in Texas, expanding its domestic production of analog and embedded chips. The multi-billion-dollar investment is expected to support thousands of jobs, including high-skill manufacturing, engineering, and construction roles, while strengthening a broader regional supply chain.
Texas was a logical location. TI is headquartered in the state and already maintains significant operations there. But the timing of the announcement underscores the role of federal policy. Projects of this scale require long-term confidence that the economics will hold up over decades, not just quarters.
That confidence, TI and other manufacturers have made clear, is precisely what President Joe Biden delivered with the passage of the CHIPS and Science Act.
A Break From the Pre-Biden Status Quo
Before President Biden took office, the U.S. semiconductor sector followed a familiar pattern where design innovation remained strong, but manufacturing capacity increasingly moved overseas. Cost pressures and the absence of federal support made it difficult to justify domestic manufacturing, even for U.S.-based firms.
The result was growing vulnerability. Supply-chain disruptions during the COVID pandemic exposed how reliant American industries had become on foreign chip production, while geopolitical tensions in countries like Taiwan raised concerns about access to critical technologies.
Biden’s CHIPS Act was designed to reverse that trend, and Texas Instruments’ expansion shows that reversal in action.
Economic and National Security Benefits
The significance of Texas Instruments’ new facilities extends far beyond the company itself. Analog and embedded semiconductors are essential for automotive manufacturing, defense systems, power management, and clean-energy technologies. Expanding domestic production reduces exposure to global disruptions and strengthens U.S. technological independence.
At the same time, these investments anchor high-paying manufacturing jobs and advanced technical expertise in the United States, reinforcing long-term competitiveness rather than short-term outsourcing.
Texas Instruments is not alone.
Since President Biden signed the CHIPS and Science Act, semiconductor manufacturers across the country have announced new manufacturing sites, expansions, and research investments. While each project has its own specifics, the common thread is federal leadership that made these investments viable.
The scale and permanence of these projects reflect the Biden administration’s recognition that rebuilding semiconductor manufacturing requires sustained public commitment, not one-off incentives.
What Texas Instruments’ Decision Ultimately Shows
Texas Instruments’ December 2025 announcement stands as a clear example of the CHIPS and Science Act in practice. Under President Joe Biden’s leadership, the federal government created the conditions for semiconductor manufacturing to return to U.S. soil at scale.
The long-term impact goes beyond any single company or state. By pairing federal investment with industrial strategy, the Biden administration demonstrated that proactive policy can rebuild critical industries, strengthen national security, and restore American manufacturing competitiveness for the decades ahead.