Semiconductor chip

For some time now, there’s been a global shortage of semiconductor chips due to inflation. Texas Instruments, however, plans to help address the shortage by investing $3.5 billion annually through 2025.

From 2026 through 2030, Texas Instruments will then invest 10% of annual revenue each year toward the chips.

At this point, you may be wondering; what does this all mean?

Semiconductor chips are important in car and cell phone production. The chips are crucial to both properly running and performing electronic functions. In cars, that includes informational entertainment, safety systems, body and lighting.

The U.S. is responsible for 12% of semiconductor chip production, which is down from 37% global production in 1990.

The chips have been increased demand since production slowed at auto manufacturing plants in 2020. Now the demand from the auto manufacturers and electronics producers who them are up 21% since 2019, according to the U.S. Department of Commerce.

The Lake Highlands based company will build more factories to accommodate the increased demand, but most production will take place in Sherman, Texas.

During an investor presentation, Head of Investor Relations David Pahl said that auto sales made up 21% of the company’s sales this year.

“These trends have resulted and will continue to result in growing chip content for application, which will drive faster growth compared to other markets,” Pahl says.