TI to invest $60B to manufacture foundational semiconductors in the U.S.

Original Article ↗ Hacker News Discussion ↗

Scale and Credibility of the $60B Plan

  • Many commenters doubt TI will truly invest $60B, noting it’s ~1/3 of its market cap and likely spread over a decade or more.
  • Several see this as similar to past mega-announcements (e.g., Foxconn in Wisconsin) that underdelivered on jobs and facilities.
  • Others counter that TI has been steadily expanding fabs for years and already has substantial US manufacturing, so at least part of this is real, not pure vaporware.
  • Some note the announcement bundles previously announced fabs and expansions into a single big headline number.

Political Context and Subsidies

  • Strong consensus that this is tightly coupled to CHIPS Act subsidies and broader federal industrial policy.
  • The language about working “alongside the U.S. government” is read as a clear signal that public money is expected.
  • Several see it as a political ad tailored to the current administration, meant to secure or preserve subsidies rather than commit to fully incremental investment.
  • There’s debate over whether such projects will be properly followed up and held accountable, or quietly scaled back later.

“Foundational Semiconductors” / Legacy Nodes

  • “Foundational” is widely interpreted as a political rebranding of mature/legacy nodes (≈22nm and above, often far larger).
  • Commenters note TI’s strength in analog, power management, RF, DSPs, and other non-leading-edge parts, many used in military, automotive, and industrial applications.
  • Older nodes are said to have lower margins but better yields and are still strategically vital, especially for defense and supply-chain security.

US Capacity, Packaging, and Competitiveness

  • Some argue advanced semiconductor manufacturing is structurally higher-cost in the US, so such fabs only pencil out with strategic or security rationales and subsidies.
  • Others point out that significant US production already exists (e.g., Intel, TI), though competitiveness issues remain.
  • There’s interest in onshoring packaging/OSAT; commenters note CHIPS money is also going into US packaging, particularly in Texas, but much remains overseas.

Power, Renewables, and Infrastructure

  • Fabs’ heavy power demand raises questions about grid impact and sourcing.
  • Some note that large industrial projects in Texas increasingly co-invest in renewables, aided by state and federal incentives.

Trust, Corporate Behavior, and Quality

  • Skeptics frame this as another case of financialization and rent-seeking: big promises to unlock subsidies, with risk of minimal real delivery.
  • One practitioner complains of serious quality issues with certain TI parts, hoping any new investment improves QC rather than just capacity.