Date: 15/07/2010

TI to buy two semiconductor wafer fabs in Japan

Texas Instruments to purchase two semiconductor wafer fabs and manufacturing equipment located in Aizu-Wakamatsu, Japan and currently operated by Spansion Japan Limited (SJL). It is being acquired under a court-approved plan of reorganization.

According to TI this purchase cost-effectively increases the production capacity that TI can offer its customers of analog semiconductors. It includes a 200mm wafer fab currently in operation that is capable of expanding TI's analog revenue by more than $1 billion annually, as well as a second non-operating wafer fab of equal size for either 200mm or 300mm production. TI will continue running the first fab and will preserve the second fab for future capacity expansion. TI plans to offer employment to almost all of SJL employees in Aizu.

The purchase includes 300mm production tools, many of which will be moved to Richardson, Texas, to help complete Phase II of RFAB, the industry's first 300mm analog wafer fab. With the completion of Phase II, RFAB will be capable of supporting $2 billion of revenue per year. The portion of the acquired 300mm tools that are not needed by TI will be re-sold.

"Analog technology is increasingly important as the vital link between the real world and digital domain in all electronic applications," said Gregg Lowe, senior vice president in charge of the company's Analog business. "This latest addition of analog capacity will further increase TI's ability to support our customers' growth, now and in the future."

The new capacity in Japan joins TI's global network of manufacturing sites and will be used to produce a range of analog products, such as amplifiers, data converters, clocks, interface and power management chips.

For more information visit: www.ti.com