TikTok has put hundreds of UK content moderators’ jobs at risk, even as tighter rules come into effect to stop the spread of harmful material online.
The viral video app said several hundred jobs in its trust and safety team could be affected in the UK, as well as south and south-east Asia, as part of a global reorganisation.
Their work will be reallocated to other European offices and third-party providers, with some trust and safety jobs remaining in the UK, the company said.
It is part of a wider move at TikTok to rely on artificial intelligence for moderation. More than 85% of the content removed for violating its community guidelines is identified and taken down by automation, according to the platform.
The cuts come despite the recent introduction of new UK online safety rules, which require companies to introduce age checks on users attempting to view potentially harmful content. Companies can be fined up to £18m or 10% of global turnover for breaches, whichever is greater.
John Chadfield of the Communication Workers Union said replacing workers with AI in content moderation could put the safety of millions of TikTok users at risk.
“TikTok workers have long been sounding the alarm over the real-world costs of cutting human moderation teams in favour of hastily developed, immature AI alternatives,” he said.
TikTok, which is owned by the Chinese tech group ByteDance, employs more than 2,500 staff in the UK.
Over the past year, TikTok has been cutting trust and safety staff across the world, often substituting workers with automated systems. In September, the company fired its entire team of 300 content moderators in the Netherlands. In October, it then announced it would replace about 500 content moderation employees in Malaysia as part of its shift towards AI.
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Meanwhile, business at TikTok is booming. Accounts filed to Companies House this week, which include its operations in the UK and Europe, showed revenues grew 38% to $6.3bn (£4.7bn) in 2024 compared with the year prior. Its operating loss narrowed from $1.4bn in 2023 to $485m.
A TikTok spokesperson said the company was “continuing a reorganisation that we started last year to strengthen our global operating model for trust and safety, which includes concentrating our operations in fewer locations globally to ensure that we maximise effectiveness and speed as we evolve this critical function for the company with the benefit of technological advancements”.
Here are Friday’s biggest calls on Wall Street: Evercore ISI reiterates Nvidia as outperform Evercore raised its price target to $214 per share from $190 ahead of the AI chipmaker’s earnings next week. “We are buyers of NVDA in front of its Jul-25Q earnings call scheduled for 27-Aug after the market close. We raise our estimates and price target.” Wells Fargo initiates Dorman Products as overweight Wells Fargo said the auto parts aftermarket company is underappreciated and undervalued. “We see DORM as a high- quality/defensive operator, and believe its unique growth engine (innovation, etc.) offers a compelling way to play the attractive/non-discretionary automotive aftermarket.” Barclays upgrades Ulta Beauty to overweight from equal weight Barclays says it likes the manner in which the company’s new CEO is executing strategy. “We upgrade to Overweight from Equal Weight based on: 1) return to sustainable positive comps and margin expansion; 2) promotional improvement; 3) ULTA x Target exit optimizing retail distribution points.” Read more. Loop upgrades Esab to buy from hold Loop says buy the dip in the welding solutions company. “We are upgrading shares of ESAB to ‘Buy’ and raising our target price to $140 per share (+$10). We believe the recent retrenchment in the shares is overblown and presents an opportunity.” Barclays downgrades Gap to equal weight from overweight Barclays says it sees tariff pressures on the clothing retailer. “We are downgrading shares of GAP from Overweight to Equal Weight as we now believe that our previous blue-sky scenario for double-digit operating margins by FY26 is off the table – diminished by tariff margin pressure and macro uncertainty.” Stifel initiates Netgear at buy Stifel says the computer networking company is a turnaround stock. “We believe Netgear is entering its second wave of transformation, positioning the company to deliver sustainable revenue growth and enhanced profitability through disciplined portfolio management across its business units.” JPMorgan reiterates Microsoft as overweight JPM says it’s sticking with the Windows and Xbox parent. ” MSFT (Azure accelerates another 4 pts to 39% growth, non-AI Enterprise remains strong, demand > supply).” Jefferies upgrades Miniso to buy from hold Jefferies says the China global retailer is well positioned for growth. “For Miniso overseas, sales growth driver will come from 1) 500+ new store opening[s] with store opening in the U.S. more concentrated e.g. it recently opened 3 stores in Austin. 2) Focus on festival period and 4Q high season.” Bank of America reiterates Honeywell as buy Bank of America says the building control stock is undervalued. ” HON’s more defensive portfolio is well-suited to the current macro environment and the company is trading at a discounted valuation versus peers.” Piper Sandler reiterates Broadcom as overweight Piper raised its price target on the semiconductor stock to $315 per share from $300. “We are bullish on the prospects for AVGO going into the coming October quarter around both the core semiconductor business and the infrastructure software segments.” Evercore ISI reiterates Apple as outperform Evercore says it likes Apple’s price hikes on Apple TV+. “We think the Apple TV+ price increases could help modestly on services growth, but the real intent is to minimize churn. Services remain on track for double digit growth (provided Licensing relationship stays intact). Maintain OP and $250 price target.” Bank of America reiterates Walmart as buy Bank of America says nation’s largest retailer has a “strong near- and long-term outlook” following its latest earnings. “We reiterate Buy as WMT’ s strong value offering & digital convenience should continue driving share gains across incomes & product categories.” JPMorgan initiates EHang at overweight JPMorgan says the China eVTOL company is well positioned. “Initiate coverage on EHang, China’s leading eVTOL OEM, at OW with a Dec- 26 PT of US$26 (51% potential upside).” Read more. Barclays reiterates Netflix as equal weight The investment bank said it’s sticking with an equal weight rating on Netflix , arguing that video streaming is near a saturation point. “Despite significant headline global household [total addressable market], streaming unit growth is likely to slow across the industry and penetration opportunities may not be evenly distributed.” Wolfe upgrades Roblox to outperform from peer perform Wolfe says Roblox is “benefiting from platform flywheel effects – search & discovery improvements, faster content velocity, pricing optimizations.” “We are upgrading RBLX to Outperform rating with a $150 PT and raising our FY’26 Bookings and EBITDA ests. by 7% and 13%, respectively, driven by incremental contributions from Regional Pricing + Advertising opportunities.” Guggenheim downgrades Paramount Skydance to neutral from buy Guggenheim downgraded the media company, citing valuation. “We are lowering our rating on Paramount Skydance to NEUTRAL from BUY and removing our 12-month price target of $13 following a significant run in the stock.”
The Namibian Competition Commission (NaCC) has entered a new phase of regulatory assertiveness. Once regarded as a relatively restrained regulator, the NaCC is now actively making use of its powers under the Namibian Competition Act, 2003 (the Act). Its recent decisions show a sharper focus on interrogating the public interest impact of merger transactions and pursuing prohibited practices across multiple sectors.
A new era for merger control
Merger control has become the clearest expression of the NaCC’s shift in approach. Beyond analysing the impact of a merger on the market structure, the Commission has embraced (similar to the South African competition authorities) its powers under the Act to consider public interest as an important focal point for merger assessment. Some noteworthy decisions by the NaCC in the past few years where public interest conditions were imposed include:
RWCO / Schwenk Namibia (2023)1: Although the NaCC found no substantive competition harm, it imposed conditions designed to enhance local ownership. Notably, the merged entity was barred for one year from purchasing newly available shares in Ohorongo Cement, a subsidiary of Shwenk Namibia, allowing Namibian entities first right of acquisition.
Sinomine / Dundee Precious Metals Tsumeb (2024)2: Approval was subject to sweeping conditions, including a three-year moratorium on retrenchments, a requirement for 92% of the workforce to be local citizens; a requirement that management must comprise of 70% local citizens and 30% foreigners; procurement preferences for Namibian-owned undertakings, and environmental undertakings. Sinomine’s subsequent voluntary separation programme – initiated without notifying the NaCC as required by the conditions – has triggered an investigation that could in terms of the Act lead to fines of up to 10% of global turnover and even revocation of approval.
Pepkor / Big Daddy Stores (2025)3: Conditions included Small and Medium Enterprise (SME) support, supplier-fairness obligations and a three-year moratorium on merger-specific retrenchments.
The NaCC has also shown that it is prepared to block deals outright. The prohibition of West China Cement’s proposed acquisition of Schwenk Namibia in July 20244 demonstrates the NaCC’s willingness to intervene where it sees excessive concentration, risks of coordination, or adverse public interest impacts on employment and local government participation.
Enforcement beyond mergers
The NaCC’s approach to increased enforcement is not limited to merger control. It is also prosecuting restrictive practices with greater frequency:
Rent-A-Drum5: In May 2025, Ren-A-Drum, inter alia, admitted to engaging in exclusionary conduct through entering into an exclusive distribution arrangement with Molok Oy in which Rent-A-Drum was given sole distribution rights of Molok related waste products in Namibia. Rent-A-Drum entered into a consent agreement with the NaCC which included a NAD250,000 penalty and costs, pending High Court confirmation.
PAN6: In July 2025, PAN admitted to contravening the Act by coordinating interchange fees with major banks. PAN entered into a consent agreement with the NaCC which included a penalty of NAD319,650.
Namib Mills and Namib Poultry Industries7: In February 2025, the NaCC announced its intention to launch an investigation against Namib Mills and Namib Poultry Industries for refusal to supply certain poultry products to SMEs.
Strategic takeaways for business
Businesses operating in Namibia should be alert to several clear trends:
Heightened scrutiny of mergers – particularly on public interest grounds such as employment, local ownership, and SME participation.
Real consequences for non-compliance – breaches of merger conditions can trigger investigations, fines, and possibly even revocation of approvals.
Closer examination of procurement arrangements, with a readiness to challenge restrictions that limit supplier or customer choice.
Increased willingness to act against dominant firms, especially where conduct impacts SMEs or consumer welfare.
Final word
The competition law environment in Namibia is changing rapidly. Merger transactions and notifications to the NaCC now demand careful forward-planning, particularly around employment, local ownership, and participation of local businesses. At the same time, businesses must be increasingly cognisant of how their everyday commercial arrangements with customers and suppliers may give rise to competition concerns.
This article was written jointly by DLA Piper and DLA Piper Africa, Namibia (Ellis Shilengudwa Incorporated). DLA Piper authors include Werner Rysbergen, Dharshini Naidoo and Zanele Mkatshwa, together with DLA Piper Africa, Namibia authors – Peter Johns and Dr Meyer van Den Berg.
Net sales of Upland cotton in the US amounted to 105,400 running bales (RB), each weighing 226.8 kg (500 pounds), for the 2025-26 marketing year during the week ending August 14, 2025. This was lower than the previous week’s sales of 242,000 bales.
According to the weekly export sales report of the US Department of Agriculture (USDA), sales were primarily to Vietnam (35,800 RB, including 400 RB switched from South Korea and reductions of 11,700 RB), Pakistan (28,100 RB, including reductions of 1,200 RB), Bangladesh (21,300 RB, including 2,600 RB switched from Pakistan and reductions of 4,500 RB), Peru (8,400 RB, including reductions of 600 RB), and India (7,300 RB). These were partly offset by reductions for Turkiye (12,600 RB), South Korea (400 RB), and Malaysia (300 RB).
US net sales of Upland cotton fell sharply to 105,400 running bales (RB) for the 2025-26 marketing year in the week ending August 14, 2025, down from 242,000 bales a week earlier, USDA reported.
Key buyers included Vietnam, Pakistan, and Bangladesh, though reductions were noted for Turkiye, South Korea, and Malaysia.
Pima sales totalled 1,000 RB, with shipments of 4,600 RB.
Export shipments of 123,300 RB were mainly destined for Vietnam (31,100 RB), Bangladesh (18,500 RB), Pakistan (12,200 RB), Mexico (9,600 RB), and Honduras (9,500 RB).
Net sales of Pima cotton totalled 1,000 RB for 2025-26, primarily for India (800 RB, including reductions of 1,900 RB) and Thailand (200 RB).
Export shipments of 4,600 RB were primarily to India (2,900 RB), Egypt (700 RB), Thailand (400 RB), Bangladesh (300 RB), and Vietnam (200 RB).
The dream of flying taxis zipping silently above traffic-clogged streets has long captured imaginations, yet the reality has remained frustratingly elusive. But recent developments suggest we may finally be approaching liftoff. Archer Aviation, a Silicon Valley startup developing electric vertical takeoff-and-landing aircraft, just achieved a significant milestone with its Midnight aircraft completing its longest piloted flight to date, covering approximately 55 miles (88.5km) in 31 minutes at speeds exceeding 126mph (203km/h) at its test facility in Salinas, California.
This breakthrough comes as Archer prepares for commercial operations in the UAE before the year’s end, backed by the Abu Dhabi Investment Office and partnered with Etihad Airways. The ambitious plan would connect Dubai to Abu Dhabi in just 20 minutes, transforming what can be a two-hour drive into a brief aerial commute.
While futuristic renderings have always been easier than navigating regulatory hurdles or operating in extreme desert conditions, Archer Aviation founder and CEO Adam Goldstein believes the convergence of technology, regulation and investment has finally created the perfect conditions for urban air mobility to take flight.
Archer Aviation’s manufacturing
What has made air taxis viable now when they weren’t before? Three things have enabled the launch of air taxis. First, battery technology has advanced to the point where we can now build vehicles that can carry sufficient loads over long distances fast enough to make it economically viable. Thanks to the EV business – specifically Tesla – for rapidly advancing this technology, which enabled us to make an aircraft that is viable and safe, meaning people are excited to pay for it, and you can travel far enough to make it interesting.
A second thing that happened is we now have a very supportive regulatory environment establishing rules. The FAA established the first set of rules, which the rest of the world is starting to adopt, that allows us to now actually build and certify these aircraft.
And then, finally, the capital investments that were required to help launch the industry have been provided from OEM providers, such as Archer, to the players who have built the core infrastructure to enable all of this. We are working through the certification process to get the project to go live by the end of this year.
Why do we need air taxis when we have ground transportation? We live and work in three dimensions, but the transportation grid has been stuck in two dimensions. You can always develop more ground transport but that eventually maxes out, which is why you see traffic in many cities. Flying over the traffic is a good answer to the problem. Of course, it’s not the only solution – tunnels and roads will continue to expand. But to be able to see the cities from the air is probably the most beautiful version of all those.
How will you scale this technology for mass adoption? In the beginning supply will be limited, which brings us to the question of how many of these aircraft can we build and distribute? A lot of community engagement will need to be done, such as meeting with different municipalities to make sure they feel comfortable and that everybody understands the safety aspects of this aircraft. Our goal is to be a long-term player, so we’ll start conservatively and grow it over time.
The idea is for this to be a mass-market product. The things that limited helicopters from scaling – predominantly cost, safety and noise – have been largely alleviated. Our aircraft has the ability to scale in ways that helicopters couldn’t.
Archer Aviation’s Midnight (Image: Courtesy of Archer Aviation)
Why did you choose the UAE for your first commercial operations? The UAE really leaned in to the industry from the very beginning, in terms of advancing technology and regulatory frameworks, in attempt to establish itself as a global leader in new transportation solutions. We partnered with the Abu Dhabi Investment Office early in the process to help build the core infrastructure and frameworks for how we would launch.
There has also been overall interest from the government to partner with companies that produce cutting-edge technology to ensure the UAE can lead in all new things. The benefit they’re going to get is early access to the results – but I don’t think that’s just an Archer thing. There’s a possibility for the UAE to become a hub for new transportation solutions for many other companies. Archer will be one of the early ones, but lots will come once they see that the UAE is a great place to launch projects.
What’s your long-term vision for urban air mobility? I think a lot of entrepreneurs, especially in the hardware space, have dreamed about taking sci-fi gadgets and turning them into real products. I’ve always had a vision of bringing flying cars into the mainstream. I think it will start slowly, and then all of a sudden, it will be everywhere.
I can envision that one day there will be multi-lane highways in the skies, and that people will be taking these aircraft to work or to vacation. In 20 years, the world will look quite different because of this product.
What will air taxi rides cost? The target price is at the high end of rideshare to start, with the ultimate goal being to substantially drive the cost down to somewhere near car ownership. The way we get there is by scaling. It will take several years to build enough aircraft, get the product out there and create different routes that make sense.
How will you build public trust in this new form of transportation? We’ll have to gain the trust over time and maintain a very high safety record, but I believe that because the product is so exciting, there will be a lot of early adopters. There will probably be more people who want to fly with it than we can supply for quite some time.
Listen to the full interview with Goldstein on The Entrepreneurs, below:
Read next: What zero-emission flying really needs: smarter planes and radically different airports
Read next: Flying taxis in the UAE will soon become a reality
The Pakistani Rupee (PKR) on Friday appreciated by 02 paisa against the US Dollar (USD) in the interbank trading and closed at Rs. 281.90 against the previous day’s closing of Rs. 281.92.
The price of the Euro decreased by Rs. 1.74 to close at Rs. 326.84 against the last day’s closing of Rs. 328.58, according to the State Bank of Pakistan (SBP).
The Japanese yen came down by 02 paisa and closed at Rs. 1.89, while the exchange rate of the British Pound witnessed a decrease of Rs. 1.81 to close at Rs. 377.93 against the last day’s closing of Rs. 379.74.
The exchange rates of the Emirates Dirham remained unchanged at Rs. 76.75, and the Saudi Riyal went up by 01 paisa to close at Rs. 75.13.
A technical change in the latest model from Chinese artificial intelligence start-up DeepSeek could be a big step towards achieving China’s goal of AI self-sufficiency, as it shows a new level of coordination between local model developers and hardware makers, according to analysts and industry insiders.
While DeepSeek did not specify the vendor of the implied chips or whether their use would be in training or inferencing, the wording elicited enthusiasm about an upcoming tech breakthrough that could enhance China’s prospects of cutting reliance on imported AI chips such as the graphic processing units (GPUs) from Nvidia.
DeepSeek did not respond to a request for comment on Friday.
Separately, Shanghai-listed shares of Cambricon Technologies, a local GPU designer that is a potential challenger to Nvidia, gained 20 per cent on Friday. The stock has more than doubled from a July low, as mainland investors bet on its growing role in supplying domestic AI chips.
In Hong Kong on Friday, shares of Hua Hong Semiconductor gained 18 per cent, while Semiconductor Manufacturing International Corp was also up 10 per cent amid hopes that the two chip foundries could do the heavy lifting in producing China’s own GPUs.
SAN JOSE, Calif., August 22, 2025 – Cisco (NASDAQ: CSCO) will participate in the 2025 Deutsche Bank Technology Conference.
No new financial information will be discussed at this event
Fireside Chat
Thursday, Aug 28, 2025
8:00am-8:35am PST (webcast will be available on investor.cisco.com)
Cisco Speakers:
Mark Patterson, EVP & Chief Financial Officer
Jeetu Patel, President & Chief Product Officer
During the conference, Cisco management and Investor Relations will also participate in Investor Meetings on Thursday, Aug 28, 2025.
About Cisco
Cisco (NASDAQ: CSCO) is the worldwide technology leader that is revolutionizing the way organizations connect and protect in the AI era. For more than 40 years, Cisco has securely connected the world. With its industry leading AI-powered solutions and services, Cisco enables its customers, partners and communities to unlock innovation, enhance productivity and strengthen digital resilience. With purpose at its core, Cisco remains committed to creating a more connected and inclusive future for all. Discover more on The Newsroom and follow us on X at @Cisco.
Cisco and the Cisco logo are trademarks or registered trademarks of Cisco and/or its affiliates in the U.S. and other countries. A listing of Cisco’s trademarks can be found at http://www.cisco.com/go/trademarks. Third-party trademarks mentioned are the property of their respective owners. The use of the word ‘partner’ does not imply a partnership relationship between Cisco and any other company.
When Texas Instruments announced a $60 billion manufacturing megaproject in July, it was a bold bet that companies would want to mass produce foundational microchips on U.S. soil. In August, Apple vowed to do just that.
During the same Oval Office press conference where President Donald Trump announced a 100% tariff on chips from companies not manufacturing in the U.S., Apple CEO Tim Cook upped his companies’ U.S. spending commitment to $600 billion over the next four years, up from an original $500 billion announcement in February.
Part of that spending, Cook said, will go toward making “critical foundation semiconductors” for iPhones and other devices at Texas Instruments’ new chip fabrication plants in Utah and Texas.
In July, CNBC became the first news organization to see the inside of TI’s newest fab in Sherman, Texas. There, full production is on schedule to start by the end of 2025. It’s one of seven new factories the chipmaker is building in the U.S. to provide chips to major customers like Nvidia, Ford Motor, Medtronic and SpaceX.
Although Texas Instruments doesn’t make the world’s most advanced chips, its essential components are found almost everywhere, from smartphones to the graphics processing units powering generative AI.
“If you have anything that plugs into the wall, or has a battery in it, or has a cord in it, you probably carry more than one TI chip in it,” said Mohammad Yunus, TI’s senior VP of technology and manufacturing.
But just one month after TI announced the $60 million project, its shares plummeted 13% following weak guidance and tariff concerns raised in its July 23 earnings call.
“The worry is their end customers. Like in the wake of tariff uncertainty, they don’t know what to expect. Are they stockpiling?” said Stacy Rasgon, senior analyst at Bernstein Research.
It remains to be seen whether demand will remain high once tariff uncertainties calm. Still, shares did recover some ground in August.
“I would position them as more of a tariff winner than a tariff loser,” said Timothy Arcuri, managing director at UBS. Arcuri said TI’s U.S. foundry will allow it to undercut the pricing of its rivals’ Taiwan-made chips.
The market for TI’s chips, however, is not a guarantee. After TI had trouble keeping up with demand during the chip shortage in 2020, Arcuri said TI’s share of the analog market “fell off a cliff.” It went from a high of 19.8% in 2020 to a low of 14.7% in 2024, according to UBS.
TI’s $60 billion megaproject includes four fabs in Sherman, Texas, one in Richardson, Texas, and two in Lehi, Utah. The new fabs will give TI five times the capacity it has today, Yunus told CNBC.
“They’re making a big bet on the fact that they regain share and that demand comes rocketing back,” Arcuri said. “If you don’t regain that share, it’s hard to justify building this much capacity.”
SM1 and SM2, the first two of four new chip fabrication plants being built by Texas Instruments in Sherman, Texas, shown on July 24, 2025.
Graham Merwin
Ramping to 300mm
While TI is well known for its graphing calculators, the company is also responsible for helping revolutionize the electronics industry. In 1958, TI engineer Jack Kilby filed the first patent for an integrated circuit. That paved the way for miniaturizing chips by building all the components of a circuit, not just the transistors, directly into a single piece of silicon.
The majority of TI’s business today comes from automotive and industrial customers that buy the company’s analog and embedded chips. Analog chips process signals like sound, light and pressure, like the temperature on a thermostat or voltage on power management chips that keep electronics safe when plugged in. Embedded chips are typically signal processors and microcontrollers for operating everyday devices, like telling the toaster to ding, the dishwasher to end a cycle or anti-lock brakes to engage.
Unlike the costly bleeding edge 2 and 3 nanometer chips made by giants like TSMC, TI’s chips are made on cheaper, legacy nodes: 45 to 130 nanometers.
That size “is the sweet spot for analog and embedded because they provide the right performance, the power, the voltage that our portfolio needs,” Yunus said.
While each TI chip costs about $0.40, according to Arcuri, they play crucial supporting roles for the world’s most advanced technologies. In a new partnership with Nvidia, for example, TI is developing a chip to drive efficiency in power-hungry data centers.
In 2009, TI made another bold move to help bring the cost of its chips down further. It opened the world’s first 300 millimeter fab for analogchips, re-purposing a memory fab from Qimonda after the chipmaker went bankrupt in the financial crisis.
“That’s what really was the catalyst for TI to have such a cost advantage,” Arcuri said.
The new wafer size gives TI “tremendous cost efficiency” because 300mm can fit “2.3 times more chips in it versus a 200mm wafer,” Yunus said. TI’s been closing and selling off some of its 200mm fabs, and all of its seven new fabs will produce on 300mm wafers.
Texas Instruments senior VP of technology and manufacturing Mohammad Yunus talks to CNBC’s Katie Tarasov in the first of TI’s four new chip fabrication plants in Sherman, Texas, on July 24, 2025.
Graham Merwin
Global supply, Texas growth
TI told CNBC it’s the country’s biggest analog and embedded semiconductor manufacturer, selling tens of billionsof chips each year. About 60% of revenue comes from customers based outside the U.S., with China making up about 20%.
About 75% of TI’s capital spend happens in the U.S., but it also makes chips abroad at fabs in Germany, Japan and China, the company told CNBC. It does testing and assembly in Mexico, Taiwan, the Philippines and Malaysia, where it’s spending $3 billion on two new sites, one of which is now in production.
TI’s global footprint is a benefit in the “dynamic situation” of tariffs right now, Yunus said.
“Our manufacturing across 15 different sites provides us the position to be able to support our customers, no matter where they are and in any political or economic environment,” he said.
Although TI considered building its new sites internationally in places like Singapore, the company ultimately settled on Sherman, Texas. The small city 65 miles north of Dallas has a population of just 50,000 people. It’s also home to a GlobalWafers factory. The Taiwan-based company manufactures the bare silicon wafers that chips, including TI’s, are made on.
Sherman Mayor Shawn Teamann said the city is now “the hub of the Silicon Prairie.”
Teamann’s grandfather worked alongside Kilby at TI in the 1950s. TI first came to Sherman in 1966, but when it announced plans to close its outdated 150mm fab, the city enticed TI to stay with incentives like tax breaks and water discounts.
The plan worked, and in 2021, TI announced it would stay in Sherman with acampus of new 300mm fabs. Now, the first of four 300mm fabs is complete in Sherman. Teamann said the 300mm project has more than doubled the city’s rate of population growth since it was announced in 2021.
As for federal support, TI got $1.6 billion of CHIPS Act funding, and a whopping 35% investment tax credit from Trump’s big bill passed in July.
At the state level, Gov. Greg Abbott has long offered incentives to chip companies willing to build in the state, from low taxes to the $1.4 billion Texas CHIPS Act passed in 2023.
Samsung is the other chip giant in Texas since 1996. The South Korean company is building a $17 billion advanced chip fab near Austin. That’s also where Apple, Amazon and AMD design many of their chips. Other chip companies in Texas include Infineon, NXP, X-Fab, Micron, GlobalFoundries, and tool supplier Applied Materials.
Water, power, workers
Making chips takes an immense amount of water, and about a quarter of Texas is in drought.
Luckily, Sherman has water rights to nearby Lake Texoma.
“It was about acquiring more rights, ramping up our production and being able to provide for the mass quantities of water it takes to run a semiconductor facility,” said Teamann, adding that the fab has almost doubled the amount of water Sherman uses.
TI will use about 1,700 gallons of water per minute when the new Sherman fab is complete, with plans to recycle at least 50% of that, Yunus said.
Chip manufacturing is also a power hungry process, so it helps that Sherman has a power plant that recently increased capacity. TI’s new Sherman fab will run entirely on renewable energy, said Yunus, adding that making chips on 300mm wafers also helps with energy efficiency.
“You use pretty much the same amount of energy but produce 2.2 to 2.3 times more chips,” he said.
Texas’ uniquely independent grid largely cuts the state off from borrowing power across state lines. In 2021, that grid failed during an extreme winter storm, causing at least 57 deaths and halting production at chipmakers like Samsung and NXP. TI told CNBC it maintained “critical operations.”
“We built redundancy into this facility,” Yunus said. “We have multiple transmission lines that feed power into the site. We also have large diesel storage tanks that we’re able to use, and generators that can continue to power the site for a few days.”
Highly skilled chip engineers are another scarce resource. It’s a talent pipeline that’s been stymied by the dramatic decline of U.S. global semiconductor manufacturing. The U.S. went from holding a 37% share of the market in 1990 to just 10% in 2022, according to the Semiconductor Industry Association.
But TI has developed partnerships with various universities, community colleges and the military to fill the talent gap necessary to fill the roles at its Sherman fab.
“There’s a lot of younger people moving to the area. I actually think it’s going to be easier for them to get the talent now than it would have been 5 to 10 years ago,” Arcuri said.
With the full $60 billion project, TI said it expects to create 60,000 U.S. jobs, but the company could not give an expected completion date when asked for one.
“It’s hard to predict when exactly that will take off,” Yunus said. “We’re hopeful that we’ll continue to build out at a pretty brisk pace, but it really depends on the market.”
