As early as 2025, the first of a projected four fabrication (fab) plants is expected to be operational.
“Our commitment to North Texas spans more than 90 years, and this decision is a testament to our strong partnership and investment in the Sherman community,” said TI chairman, president, and CEO Rich Templeton.
“TI’s future analog and embedded processing 300-mm fabs at the Sherman site are part of our long-term capacity planning to continue to strengthen our manufacturing and technology competitive advantage and support our customers’ demand in the coming decades.”
The City of Sherman approved a 90 percent tax abatement, amounting to a $148 million valuation cut over 10 years. The city council also approved abatements for each of the other three projected fabs to begin when they are constructed.
Back in September, Sherman ISD filed four Chapter 313 abatement proposals for each fab plant to begin in 2025, 2032, 2037, and 2040, respectively.
During the 2021 regular session, the Texas legislature did not renew Chapter 313 and it is set to expire at the end of 2022. Until then, school districts are able to award such abatements that typically last 10 years. Collectively, they’ll amount to hundreds of millions of dollars in property tax abatement over their lifespan.
The decision comes as the world struggles with a semiconductor shortage due to the pandemic’s effects on overseas manufacturing and shipping. And so, a concerted effort has amplified to bring semiconductor manufacturing back stateside, and Texas is looking to provide the destination. Samsung, another tech manufacturing giant, is eyeing Taylor for its $17 billion microchip plant.
Celebrating the decision, Governor Greg Abbott said, “In addition to bringing billions of dollars in capital investment and thousands of new jobs to North Texas, this historic investment will keep Texas a national leader in semiconductor manufacturing while also strengthening the domestic semiconductor supply chain.”
TI was founded in 1930 in Dallas and still operates its headquarters in the North Texas facility. Sherman, located north of Dallas, has a population of 43,000 people.
The city’s mayor, David Plyler, added, “Texas has developed a worldwide reputation for its pro-growth policies, highly adaptable workforce, and abundant natural resources, all of which played a crucial role in TI’s decision to make this massive investment in American manufacturing right here in Sherman.”
Texas maintains its titanic status among the nation for attracting businesses, due both to its friendly regulatory climate and the alacrity with which local governments dole out tax abatements.
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Brad Johnson is an Ohio native who graduated from the University of Cincinnati in 2017. He is an avid sports fan who most enjoys watching his favorite teams continue their title drought throughout his cognizant lifetime. In his free time, you may find Brad quoting Monty Python productions and trying to calculate the airspeed velocity of an unladen swallow.