The proposed 200,000ft² facility is expected to create around 500 new high-tech jobs.
The company expects to complete the construction of the factory by late next year.
Raytheon Space and Airborne Systems president Roy Azevedo said: “This is an investment in the talented McKinney workforce. It shows we are serious about our presence in Texas and that we are here to stay.”
The company stated that the expansion will further increase the contribution made by its North Texas business operations to the state’s economy.
The US-based firm has claimed that it provided employment to over 8,000 Texans last year.
This figure does not include an additional 10,000 indirect jobs throughout the state.
Research conducted by a team led by the University of North Texas Economic Research Group director Dr Michael Carroll estimated Raytheon’s contribution to the Texas economy at $4.8bn.
Dr Michael Carroll said: “Raytheon has a significant presence in the Texas economy. When we examined employee wages and spending, supplier spending, tax revenues and other factors, we found Raytheon’s North Texas operations are a powerful economic engine.”
Raytheon’s space and airborne systems business is involved in building radars and other sensors for aircraft, spacecraft and ships.
According to a Dallas Business Journal report in August last year, the business unit recorded $6.4bn in sales in 2017.
The McKinney facility produces intelligence, surveillance and reconnaissance systems. The systems produced include electro-optical systems and high-energy laser systems.