InfrastructureTexas Instruments Begins Production at Second Lehi 300mm Fab
Texas Instruments' Lehi, Utah 300mm fab ramp-up continues as part of domestic semiconductor expansion. TI's focus on analog chips supports automotive and industrial applications. Supply chain planners should note the capacity additions.
Reviewed for accuracy by Kodi C.
On Texas Instruments (TI) confirmed that production has started at LFAB2, its second 300 mm wafer fabrication plant in Lehi, Utah. The $11 billion expansion sits adjacent to LFAB1—the former Micron fab TI acquired in 2021—and doubles the site’s ability to deliver analog and embedded processing semiconductors for industrial and automotive customers. LFAB2 is designed for a multi-decade operating life, with cleanrooms ready to support wafer technologies spanning 65 nm to 45 nm nodes and the flexibility to shift to future process modules as needed. The facility joins TI’s 300 mm footprint in Richardson and Sherman, Texas, and positions the company to meet escalating demand for electrification, industrial automation, and vehicle safety systems while pursuing U.S. CHIPS Act incentives.
TI emphasized that Lehi’s second fab will run on 100% renewable electricity, recycle 95% of water, and achieve LEED Gold certification. The site will employ more than 800 direct workers and thousands indirectly through suppliers. It includes dedicated reliability labs, automotive-grade quality systems, and secure data environments required by automotive OEMs, medical device makers, and defense customers. Production at LFAB2 starts with analog devices such as power management ICs, signal chains, and microcontrollers that benefit from larger 300 mm wafers, reducing per-unit cost and improving energy efficiency versus legacy 200 mm processes.
Why it matters for governance teams
The Lehi ramp is not just a capacity announcement—it sets in motion compliance obligations across subsidy programs, environmental stewardship, supply chain resilience, and customer assurance. TI applied for federal incentives under the CHIPS Act and is eligible for the Advanced Manufacturing Investment Credit; both programs require extensive reporting on capital expenditures, workforce development, cybersecurity, and child care commitments. Companies sourcing from LFAB2 must ensure supplier contracts capture these conditions, including potential profit-sharing provisions and restrictions on expansion in foreign countries of concern.
Automotive and industrial customers rely on TI to maintain ISO 9001, IATF 16949, ISO 14001, and ISO 45001 certifications. The new fab introduces additional audit scope—customers will examine process change controls, contamination management, equipment qualification, and cybersecurity for design collaboration. Governance teams should confirm that supplier quality agreements reference LFAB2 explicitly, define notification requirements for process deviations, and outline responsibilities for joint failure analysis.
The ramp also has implications for business continuity. Customers must integrate LFAB2 into dual-site sourcing strategies, verifying that product qualification plans cover both Lehi fabs and factoring in the phased capacity build. TI notes that full production will take several years, meaning supply planners should monitor ramp milestones, cycle times, and yield learning curves.
Governance checkpoints
- CHIPS compliance readiness: set up a compliance register covering CHIPS incentive covenants, including reporting cadences, workforce commitments, profit-sharing triggers, and restrictions on significant transactions in foreign countries of concern. Align financial controls to segregate eligible and ineligible expenditures.
- Supplier quality integration: Update PPAP (Production Part Approval Process) packages, control plans, and failure mode and effects analyzes (FMEAs) to include LFAB2 production lines. Ensure change notification thresholds match customer expectations and regulatory requirements for safety-critical components.
- Environmental and ESG metrics: Document energy sourcing agreements, water recycling metrics, waste handling, and greenhouse gas accounting for the new fab. Prepare for sustainability reporting under the EU Corporate Sustainability Reporting Directive and forthcoming U.S. SEC climate rules, which may require facility-level data.
- Cybersecurity and IP safeguards: Validate that engineering collaboration with LFAB2 uses secure networks, multifactor authentication, and data loss prevention aligned with TI’s global security policies. Suppliers exchanging sensitive design data should map controls to NIST SP 800-171 and customer-specific secure development requirements.
- Business continuity planning: Integrate LFAB2 into disaster recovery and pandemic response plans. Coordinate with TI on mutual aid agreements, inventory buffers, and emergency communication protocols specific to the Lehi site.
Each checkpoint should be accompanied by documented artifacts—updated supplier scorecards, audit reports, environmental dashboards, and cybersecurity assessments—that boards and regulators can review.
Rollout plan
Q1 2024: Engage TI account teams to obtain ramp timelines, qualification packages, and audit schedules. Update supply agreements to reference LFAB2, ensuring pricing, warranty, and liability provisions align with the new production footprint. For teams seeking CHIPS-related benefits, align grant compliance teams with procurement and finance.
Q2 2024: Conduct onsite or virtual audits focusing on cleanroom operations, statistical process control, and traceability. Review TI’s documentation for compliance with automotive SPICE and cybersecurity requirements (for example, ISO/SAE 21434) when products feed automotive systems. Begin integrating LFAB2 environmental data into sustainability reporting systems.
Second half 2024: Execute production part approval runs and reliability testing for components transitioning to LFAB2. Update risk registers with dual-source coverage and track cycle times versus commitments. Collaborate with TI on supply chain transparency, including country-of-origin documentation and conflict minerals reporting that accounts for Lehi sourcing.
2025 and beyond: Maintain continuous monitoring of yield performance, incident reports, and regulatory changes affecting semiconductor subsidies or export controls. Prepare for periodic recertification audits and customer-driven assessments as LFAB2 reaches higher volumes.
TI is partnering with Utah universities and technical colleges to develop apprenticeship and upskilling programs for LFAB2, including scholarships at Utah Valley University and Salt Lake Community College and on-the-job training pipelines that align with the company’s Skills-first hiring commitments. Your compliance team should verify that workforce reporting captures apprenticeship hours, diversity metrics, and labor standards compliance—requirements embedded in CHIPS applications and state incentive agreements.
Because Lehi sits in a seismically active region, TI invested in base-isolated construction, redundant utilities, and on-site water purification backups. Customers should request evidence of seismic risk assessments, emergency drills, and coordination with local authorities. These artifacts support business continuity certifications and can be used in regulatory examinations focused on operational resilience.
TI also highlighted that LFAB2 will support secure onshoring for defense and aerospace programs. Companies subject to DFARS cyber clauses and National Industrial Security Program rules should align classification handling procedures with TI’s secure collaboration environments, including encryption standards and export authorizations for design data shared across borders.
Risk watch
Monitor the U.S. Department of Commerce’s CHIPS award decisions; funding agreements may impose additional reporting or expansion constraints. Track state-level regulatory developments in Utah regarding water use, environmental permitting, and workforce incentives. Watch for shifts in global automotive demand, which could influence utilization rates and lead times.
By embedding LFAB2 into governance programs now—spanning subsidies, quality, sustainability, cybersecurity, and continuity—enterprises can secure reliable access to advanced analog supply while satisfying regulators and customers who now scrutinise semiconductor sourcing.
Continue in the Infrastructure pillar
Return to the hub for curated research and deep-dive guides.
Latest guides
-
Infrastructure Resilience Guide
Coordinate capacity planning, supply chain, and reliability operations using DOE grid programmes, Uptime Institute benchmarks, and NERC reliability mandates covered here.
-
Edge Resilience Infrastructure Guide
Engineer resilient edge estates using ETSI MEC standards, DOE grid assessments, and GSMA availability benchmarks documented here.
-
Infrastructure Sustainability Reporting Guide
Produce audit-ready infrastructure sustainability disclosures aligned with CSRD, IFRS S2, and sector-specific benchmarks curated here.
References
- Texas Instruments — Begins Production at Second 300mm Fab in Lehi (February 13, 2024) — news.ti.com
- CVE Details - Vulnerability Database — CVE Details
- ISO/IEC 27017:2015 — Cloud Service Security Controls — International Organization for Standardization
Comments
Community
We publish only high-quality, respectful contributions. Every submission is reviewed for clarity, sourcing, and safety before it appears here.
No approved comments yet. Add the first perspective.