Analog and mixed-signal chips

TI's $60B 300mm fab build-out resets US analog capacity through 2029

Texas Instruments is investing $60B+ across seven new 300mm semiconductor fabs in the US: Sherman SM1 (production from 2025), Sherman SM2, Lehi (production from 2026), and additional Lehi + Sherman + Richardson facilities through 2029. CHIPS and Science Act direct funding is $1.6B, with an additional $6-8B in Investment Tax Credit. The shift from 200mm to 300mm wafers cuts analog unit costs roughly 30% and significantly expands US-sovereign analog capacity. This is the largest single capacity reset in the global analog market in two decades - and crucially it is on the analog node (28-130nm) where most semiconductor manufacturing investment has otherwise gone to leading-edge digital (TSMC 2nm, Intel 18A, Samsung GAA). The competitive read: TI consolidates its share lead over ADI, ST, and Infineon through 2030 by virtue of the lower unit cost on the new 300mm capacity; smaller analog companies face structural margin pressure as TI prices its 300mm output into the market.

State of the art (2026)

The analog and mixed-signal market sits at roughly $85-99B in 2026, about a tenth of total semiconductor revenue, and remains a five-incumbent oligopoly: Texas Instruments, Analog Devices, STMicroelectronics, Infineon and NXP hold close to half of it. TI's FY2025 revenue reached $17.7B (+13%), led by its $14B analog segment, as the 2023-24 cyclical trough cleared. Three structural shifts now matter most: TI's $60B+ seven-fab US 300mm build-out cutting unit cost; wide-bandgap power (SiC, GaN), where Wolfspeed exited a 91-day Chapter 11 in September 2025 alongside onsemi, Infineon, ST and ROHM; and NVIDIA's 800V HVDC rack architecture, arriving at scale with Kyber/Vera Rubin in 2027, opening a new high-volume PMIC application.

Wide-bandgap power (SiC + GaN) is the highest-margin growth tier

Silicon carbide (SiC) and gallium nitride (GaN) power discrete components are growing far faster than the broader analog market. SiC traction inverters in EVs are now standard above the 400V tier; AI data-centre power supplies are moving to 800V rack-scale architectures that need SiC and GaN at every power-conversion stage. The market structure has reshuffled: Wolfspeed filed a prepackaged Chapter 11 in June 2025 and emerged in September 2025 having cut roughly $4.6B of debt, leaving it, onsemi, STMicroelectronics, Infineon and ROHM as the dominant SiC suppliers. On GaN, Navitas, Innoscience and EPC compete with Power Integrations and TI. The structural read is that wide-bandgap power is now the highest-margin tier of analog/mixed-signal - 30-40%+ gross margin vs 50-55% for incumbent silicon power, but at 3-5x the growth rate. Companies with credible SiC and GaN scale are repriced upward; companies without are at risk of margin compression.

AI data-centre 800V rack-scale power-management IC is the new high-volume application

AI server racks are migrating to 800V DC distribution architectures (vs the 48V standard of the last decade) to reduce power-conversion losses and copper requirements as rack power densities exceed 100kW. The transition opens a structurally new high-volume application for power-management ICs (PMICs): voltage regulators, multi-phase controllers, digital-power controllers, and isolated gate drivers - all in unit volumes that scale with global AI data-centre capacity. TI, ADI, Monolithic Power Systems (MPS), Vicor, Renesas, and Infineon all compete in this segment. MPS has been the breakout pure-play with hyperscaler design wins; TI and ADI have the broader portfolios. The structural question for 2026-2028 is whether MPS-style focused executors continue to gain share, or whether the incumbents' scale and broader sockets reabsorb the design wins as AI server power architectures mature.