TI further increases Analog production capacity

Equipment purchase kicks off Phase II expansion of RFAB

Output will enable further growth

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Apr 27, 2010, 08:30 ET

DALLAS, April 27 /PRNewswire/ -- Texas Instruments Incorporated (TI) (NYSE: TXN) today announced it is again expanding its Analog manufacturing capacity for customers with the recent purchase of more than 100 tools from Qimonda North America and Qimonda Dresden, Germany.

(Photo: http://www.newscom.com/cgi-bin/prnh/20100427/DA93822)

This is the first step in launching the Phase II expansion of RFAB, the industry's first 300mm analog wafer fab, located in Richardson, Texas, near TI's headquarters.

When complete, Phase II of RFAB will double the analog manufacturing capacity in the North Texas facility, bringing its revenue capability to about $2 billion. TI will begin moving Phase II equipment into the facility immediately so it is ready to be brought online as market demand warrants. Phase I and II combined will fill only two-thirds of the 1.1 million square foot facility, leaving additional room for future expansion.

"Our 300mm fab is a unique cornerstone of our analog business. With Phase I progressing well and on track to begin shipments by the end of the year, this Phase II expansion will give us a head start in providing our customers access to significant analog capacity to fuel their growth," said Gregg Lowe, TI senior vice president in charge of the company's Analog business.

The fab will produce analog integrated circuits based on TI's proprietary process. Customers will use these chips in electronics ranging from smartphones and netbooks to telecom and computing systems.

Phase II of RFAB is the most recent in a series of analog manufacturing expansions by TI over the past 24 months:

In 4Q09, TI began installing nearly 200 manufacturing tools for 200mm production in Dallas, Freising, Germany and Miho, Japan.
In 3Q09, TI announced the Phase I opening of RFAB, the industry's first 300mm Analog manufacturing facility, and immediately began to move in equipment.
TI is installing more than 400 additional testers between 2Q09 and 2Q10.
In early 2009, TI opened Clark, an 800,000-square-foot assembly and test facility in the Philippines, which quickly ramped production with the latest packaging technologies.
In 2008, TI redeployed more than 150 tools from an underutilized wafer fab in Dallas to fortify capacity in other analog fabs worldwide.

For more information about TI delivery capacity and analog manufacturing investments, please see www.ti.com/capacity-pr. For more information about RFAB, click here.

About Texas Instruments

Texas Instruments (NYSE: TXN) helps customers solve problems and develop new electronics that make the world smarter, healthier, safer, greener and more fun. A global semiconductor company, TI innovates through design, sales and manufacturing operations in more than 30 countries. For more information, go to www.ti.com.

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