Dear Customer,
Attached is a press release that Texas Instruments made last night. TI has just acquired two additional fabs from Spansion in Japan. One fab is an operational 200mm fab which will initially produce data converters and amplifiers on TI’s precision HPA07 process technology. The technology transfer is already underway, and this 200mm fab will be in production in 4Q10. This fab will add about $1B worth of annual production for TI’s analog business.
The second fab is an empty shell, which we are reserving for future capacity expansions.
Along with these two fabs, TI also purchased 300mm wafer manufacturing equipment from Spansion, which will be sent to RFAB (the world’s first 300mm analog fab) to help complete Phase II of the expansion of RFAB.
Both of the fabs, and the 300mm equipment, were purchased through a bankruptcy process, making this a very efficient use of capital while greatly expanding our capacity.
From a fab standpoint, this marks four important capacity increases for TI in the last year. Phase I of RFAB will enable TI to deliver $1B of increased shipments to our customers. Phase II will add an additional $1B. The Spansion 200mm fab adds another $1B, and the empty shell will enable further increases as needed.
Well over $3B of increased capability represents an additional 75% over our 2009 analog revenue of $4B.
TI appreciates the teamwork and partnership we have had with you and your consideration of our products for more of your business. These proactive actions we are taking to increase capacity will enable us to jointly benefit our partnership for years to come.
It might make sense to get your engineers together with our local sales team to see how we can maximize the benefit of this capacity for you. They will follow-up with you directly.
Thomas W. Kugelstadt
Senior Applications Manager, Industrial Interface Products
Texas Instruments
