Apple Produces Chips At Texas Instruments' New Factory In Texas

Illustration of the Texas Instruments chip factory (photo: x @lauriewired ·)

JAKARTA - Texas Instruments (IT) officially opened a USD 60 billion semiconductor plant in Sherman, Texas, with Apple being one of the first customers to produce chips at the facility.

The plant is the first of four new facilities in Sherman and part of the expansion of seven factories in Texas and Utah. The goal is to provide an important supply of chips from within the country, which have been mostly manufactured overseas.

Apple has confirmed it will produce 'essential fundamental securities' for iPhones and other devices in IT's new plant. The chip in question is not a high-performance processor designed in Cupertino, but rather an analog chip and a small embedded component that regulates power, sensors, and signals.

Although each chip is only worth about 40 cents, its existence is vital. Without this chip, the iPhone cannot be produced. With domestic supplies, Apple can also avoid additional costs due to the new tariff policy.

The factory's opening coincides with increased trade pressure. In August 2025, US President Donald Trump announced a 100% tariff for chips produced overseas. On the same day, Apple CEO Tim Cook raised Apple's investment commitments in the United States to 600 billion dollars in four years, up from the previous 500 billion dollars in February.

Cook said some of the investments would flow directly to Texas Instruments facilities in Sherman, Richardson, and Lehi. By relying on domestic production, Apple is not only avoiding high tariff loads, but also ensuring its supply chain remains stable.

Texas Instruments does not produce a state-of-the-art 2 or 3 nanometer processor used on the Apple Silicon-based iPhone 16e or Mac. The focus is instead on analog chips and is embedded with old technology measuring 45 to 130 nanometers.

According to CNBC, the chip regulates important functions such as power control, sensor readout, and basic signal processing. Although not much talked about, this component remains crucial for Apple, which is unable to risk supply shortages.

The facility in Sherman itself is designed to be environmentally friendly with complete power from renewable energy, as well as recycling about half of the 1,700 gallons of water used every minute. In addition, the use of a 300mm wafer allows more chip production with the same energy consumption.

Despite having modern facilities, the main problem remains with the availability of labor. The US semiconductor production share globally slumped from 37% in 1990 to just 10% in 2022.

To overcome this, IT is collaborating with universities, community universities, and the military to build skilled labor lines. The company estimates full expansion could create up to 60,000 jobs in the United States.

Apple is very dependent on the cutting-edge processor, but the processor cannot function without the support of thousands of cheaper and less highlighted companion chips. By producing the chip in Sherman, Apple is protected from the risk of trade war, high tariffs, and disruptions to global supply chains.

In addition, Apple's involvement also demonstrates compliance with the US government's push to bring back semiconductor production to the US.

This collaboration may not look glamorous, but it is very strategic. Apple's success in presenting the future iPhone still relies on the supply of analog chips from the Texas Instruments factory in Sherman. Without these tiny chips, the iPhone could never work.