Texas Instruments to Open $3.1B Manufacturing Facility in Metro Dallas, Create 500 Jobs
RICHARDSON, TEXAS — Dallas-based Texas Instruments (NASDAQ: TXN) will open a $3.1 billion manufacturing facility in Richardson, a northeastern suburb of Dallas, in a move that is expected to create approximately 500 new jobs. Texas Gov. Greg Abbott made the announcement on Thursday, April 18.
The facility, which local news sources report will span approximately 870,000 square feet, will be dedicated to the manufacturing of semiconductors and chips used in a variety of devices, including smartphones and other industrial machinery. A timeline for construction was not released.
Texas Instruments (TI) had been engaged in site selection for a new plant for several months and even considered locations outside Texas, according to The Dallas Morning News. The paper reports that TI owns the land on which the new factory will be built, and that the Plano Independent School District, which serves the area in which the new plant will be located, has agreed to reduce TI’s property taxes for 10 years, which will save the company approximately $100 million.
Company officials also cited Richardson’s strong workforce and proximity to key pieces of infrastructure as reasons to expand in the area.
“We’ve selected Richardson because of its access to talent, an existing supplier base and multiple airports, as well as operational efficiencies due to the close proximity of the new facility to our existing Richardson factory,” says Kyle Flessner, senior vice president of TI’s technology and manufacturing group. “This factory represents a competitive advantage for our company and will enable us to continue to support our customers well into the future.”
“Made in Texas is a powerful label,” said Gov. Abbott. “This expansion will create hundreds of jobs, generate billions in capital investment, and further solidify Texas’ reputation both at home and abroad.”
As part of the deal, TI will receive a Texas Enterprise Fund grant of $5.1 million that is contingent upon meeting the capital investment and job creation requirements.
Richardson, which is located along the “Telecom Corridor,” is known as a hotbed of tech activity. Major employers in the area include AT&T, telecommunications equipment providers Cisco Systems and Fujitso Network Communications, and RealPage, which produces software for real estate management.
The stock price of Texas Instruments, which employs approximately 11,000 people throughout North America, closed at $115.51 per share on Thursday, April 18, up from $99.96 per share a year ago.
— Taylor Williams