Texas Instruments announced on August 4 that GE Appliances will source roughly one-third of the chips required for its new Louisville laundry plant starting in 2027. This commitment nearly doubles GE Appliances' total expenditure with Texas Instruments. The decision aligns with GE's strategy to shorten its supply chain, with the company citing Texas Instruments' domestic manufacturing capabilities as a key factor.
The chips for the new facility will be produced at Texas Instruments' fabrication plants in Sherman and Richardson, Texas, as well as Lehi, Utah. This arrangement highlights the company's ability to serve customers from U.S. soil, a capability that has become a priority for many boardrooms concerned with supply chain security.
Texas Instruments has stated it plans to invest more than $60 billion across seven fabs in Texas and Utah, with clean room space built during previous economic downturns now ready to absorb increased demand.
CEO Haviv Ilan noted on the second-quarter earnings call that the company's inventory and capacity allow it to win business that rivals cannot serve quickly enough. Ilan described instances where customers faced production stoppages and turned to Texas Instruments for immediate support, stating that such situations present opportunities to retain design wins.
The GE Appliances agreement represents a planned, long-term version of this dynamic, negotiated years ahead of the 2027 production start.
Texas Instruments shares have risen approximately 60% in 2026, moving from a starting point near $173 to around $280. The stock reached a 52-week high of $334 in June before a sector-wide selloff caused a pullback. The company reported trailing free cash flow of $6.5 billion, a figure that includes $1.6 billion from the CHIPS Act.