Texas Instruments runs semiconductor factories, not just design shops

Texas Instruments (TI) owns and operates its own semiconductor manufacturing plants, called fabs (short for fabrication facilities). Unlike many chip companies that design chips and pay someone else to make them, TI manufactures a large portion of the chips it sells. This means TI controls both the design and the physical production of the semiconductors that go into everything from car engines to industrial equipment to consumer electronics.

TI operates fabs in the United States, primarily in Texas, as well as in other countries. These factories are capital-intensive operations — they cost billions of dollars to build and maintain — but they give TI direct control over production capacity, quality, and supply chain decisions. Understanding where and how TI makes its chips matters if you work in manufacturing, supply chain management, or any industry that depends on semiconductor availability.

Key Takeaways

  • Texas Instruments owns multiple semiconductor fabs located primarily in Texas, with additional facilities in other U.S. states and internationally.
  • TI's fabs produce analog chips and embedded processors, which are the main product categories the company manufactures.
  • Owning its own fabs gives TI more control over production timelines and supply, but also requires massive capital investment and ongoing operational costs.
  • TI's fab locations and production capacity have shifted over time in response to market demand, technology changes, and business strategy.

Where Texas Instruments operates its main manufacturing plants

TI's largest and most significant fab is located in Richardson, Texas, near Dallas. This facility has been central to TI's manufacturing operations for decades and produces a wide range of analog and embedded processor chips. The Richardson fab is one of the most advanced semiconductor manufacturing plants in the world and represents a major portion of TI's total production capacity.

TI also operates fabs in other Texas locations, including Sherman and Lubbock. Beyond Texas, TI has manufacturing operations in other U.S. states and internationally. The company has historically had fab capacity in places like Japan and Mexico, though the specific mix of active facilities has changed as TI has adjusted its manufacturing footprint to match demand and technology roadmaps.

The exact status and production focus of each fab can shift year to year based on market conditions and TI's strategic priorities. If you need current information about which TI fab produces a specific chip or what capacity is available, TI's investor relations materials and product datasheets are the most reliable sources, since fab assignments can change.

What types of chips Texas Instruments manufactures in its fabs

TI's fabs primarily produce analog semiconductors and embedded processors. Analog chips handle real-world signals — they amplify, filter, convert, and manage power in circuits. Embedded processors are the small computing cores that run inside devices and control their functions. Both categories are fundamental to industrial equipment, automotive systems, power supplies, and consumer devices.

TI does not manufacture high-end microprocessors or graphics chips in its own fabs. Instead, TI focuses on the analog and embedded space, where the company has deep informed and strong market position. This product focus shapes which fabs TI needs and what technology nodes (the size and sophistication of the transistors) those fabs must support.

Because analog and embedded chips often do not require the absolute cutting-edge manufacturing technology that leading-edge microprocessors demand, TI's fabs can remain profitable and competitive even when they are not at the smallest technology nodes. This is different from companies like Intel or Samsung, which race to manufacture at the smallest possible transistor sizes.

Why owning fabs matters for Texas Instruments' business

Owning its own manufacturing capacity gives TI several advantages. The company can control production schedules, prioritize orders, and respond to supply disruptions without waiting for a contract manufacturer to free up capacity. During periods when chip demand exceeds supply — as happened in 2021 and 2022 — companies with their own fabs can maintain production while others face long lead times.

Owning fabs also allows TI to protect proprietary manufacturing processes and keep production costs lower over the long term, since the company does not pay a third party's markup. However, the trade-off is significant: building and maintaining fabs requires billions of dollars in capital investment, and the company must absorb the costs even during downturns when demand is weak.

This is why not all semiconductor companies own fabs. Some, called fabless companies, design chips but outsource manufacturing entirely. Fabless companies have lower capital costs and more flexibility, but less control. TI's strategy of owning fabs reflects its focus on long-term stability and control, particularly in the analog and embedded markets where it is the market leader.

How fab capacity affects chip availability and lead times

The amount of production capacity TI has in its fabs directly affects how quickly the company can deliver chips to customers. When demand is high and fabs are running at full capacity, lead times (the time between when you order and when you receive) stretch longer. When demand is low, lead times shorten and inventory builds up.

TI's fab capacity is not unlimited, and the company must make strategic decisions about which products to prioritize when fabs cannot make everything at once. During the 2021–2022 chip shortage, TI prioritized high-volume products and long-term customers, which meant some smaller customers or niche products faced extended waits. Understanding TI's fab capacity constraints helps explain why chip availability varies so much from year to year.

TI publishes information about lead times and inventory levels in its quarterly earnings reports and on its website. If you depend on TI chips for your products, monitoring these reports gives you insight into whether production is ramping up or slowing down.

Investment in new fab technology and expansion

TI regularly invests in upgrading its existing fabs to support new manufacturing technologies and increase capacity. These investments allow the company to produce chips more efficiently, reduce defects, and support new product designs. Fab upgrades are expensive and take years to complete, so TI plans these investments carefully based on long-term demand forecasts.

In recent years, TI has announced plans to expand fab capacity in response to strong demand for analog and embedded chips across automotive, industrial, and consumer markets. The company has also invested in advanced packaging and test facilities, which are the steps that come after the actual chip manufacturing and prepare chips for shipment to customers.

TI's fab investment strategy reflects the company's belief that owning manufacturing capacity will remain important for its business. This is different from some other semiconductor companies that have moved toward a fabless model or rely more heavily on contract manufacturers.

Frequently Asked Questions

Does Texas Instruments make all of its own chips?

No. TI manufactures a large portion of its chips in its own fabs, but the company also uses contract manufacturers for some products, particularly in cases where TI's fabs are at full capacity or where a contract manufacturer has specialized informed. The exact split between internal and outsourced manufacturing varies by product line.

Where can I find out which TI fab makes a specific chip?

TI's product datasheets sometimes list the fab location, but not always. For detailed information about manufacturing location, contact TI's technical support or sales team directly. They can tell you which fab produces a specific part number and what the current lead time is.

How does TI's fab ownership compare to competitors like Analog Devices or Maxim?

Analog Devices and Maxim are primarily fabless companies — they design chips but outsource manufacturing to contract fabs. TI's ownership of its own fabs is one of the main differences in business model. This gives TI more control but also higher capital costs and operational risk.

What happens to TI's fabs during an economic downturn?

During downturns, TI's fabs operate at lower capacity utilization, which reduces efficiency and profitability. The company may reduce shifts, defer maintenance, or temporarily idle some fab lines. However, TI maintains its fabs even during weak periods because shutting them down completely would be more expensive than keeping them ready for the next upturn.

Can I tour a Texas Instruments fab?

TI does not offer public tours of its manufacturing fabs due to security, proprietary process protection, and cleanroom requirements. However, TI publishes videos, technical articles, and investor presentations that explain how its fabs operate and what they produce.