Signal
In October 2025, Texas Instruments (TI) announced plans to manufacture 95% of its semiconductors in-house by 2030. This roadmap includes expanded production at existing fabs in Texas and Utah, alongside new vertical integration efforts. The company’s shift aims to eliminate reliance on foreign foundries, particularly in Asia. This marks one of the most ambitious reshoring commitments from a US semiconductor leader. TI cited national security, supply chain control, and long-term cost predictability as core drivers.
Why it matters
Reshoring chip fabrication is a cornerstone of defence autonomy. Advanced defence systems, from missile guidance to ISR platforms, rely on uninterrupted chip supply. Foreign fabs, even in allied nations, represent potential choke points. By consolidating manufacturing within US borders, TI directly supports secure defence procurement pipelines. It also aligns with US industrial policies like the CHIPS Act, reinforcing the strategic layer of domestic tech resilience. As geopolitical fragmentation accelerates, vertical control over semiconductor production is no longer optional.
Strategic Takeaway
Whoever owns the fabs owns the future. Texas Instruments' move signals that defence-grade semiconductor sovereignty will be built, not outsourced.
Investor Implications
TI’s reshoring plan positions it as a cornerstone for defence-aligned semiconductor supply chains. Investors should expect sustained capital expenditure through 2030, with longer-term payoffs tied to strategic independence. Public-sector procurement may increasingly favour vertically integrated suppliers. Companies building US-based fab tooling, testing, and packaging infrastructure (e.g. Lam Research (NASDAQ: LRCX), Applied Materials (NASDAQ: AMAT)) also stand to benefit. ETFs such as SOXX (iShares Semiconductor ETF) and DFNL (Davis Select Financial ETF, with TI exposure) may gain as onshore capacity scales. Investors should monitor whether other US chipmakers follow suit or remain exposed to geopolitical chokepoints.
Watchpoints
2026 → Groundbreaking of new TI fab facilities in Texas and Utah.
2027–28 → CHIPS Act grant decisions for TI reshoring projects.
2030 → Target year for 95% in-house production milestone.
Tactical Lexicon: Semiconductor Sovereignty
The ability to design and manufacture critical chips within national or allied borders.
Why it matters:
Shields defence and industrial systems from external disruption.
Anchors technological leadership in an age of supply chain bifurcation.
Sources: ee-times.com
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