TI Opens First Semiconductor Plant in China

After expanding its manufacturing capabilities in the United States, Japan and Germany over the past 24 months, Texas Instruments, Inc., has set its eyes on China. The semiconductor supplier purchased a fully equipped 200 mm wafer fabrication facility from Cension Semiconductor Manufacturing Company. Located in the Chengdu High-tech Zone (CDHT), which is considered by many to be China's next major technology hub, it will further expand TI's analog production capacity closer to the customer base.

It includes an operating 120,000 sq. foot fabricator that can support more than $1 billion in annual revenue and an additional 134,000 sq. foot fabricator reserved for future production needs.

In a press release, Gregg Lowe, TI senior VP for Analog, said, "TI has been committed to serving the China market for 25 years." "Increasingly, customers there are using TI's analog chips for the real-world functions in their electronic applications. This fabricator in Chengdu will strengthen our ability to support customers' growing requirements and deliver analog,” Lowe continued.

Media reports indicate that TI intends to begin production soon, first starting with power management chips and then moving to other analog ICs.

In July, TI acquired two wafer fabricators and manufacturing equipment, located in Aizu-Wakamatsu, Japan, from Spansion (News - Alert) Japan Limited (SJL), the Japanese branch of Spansion. It includes a 200mm wafer fabricator 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 fabricator of equal size for either 200 mm or 300 mm production.

This purchase also includes 300 mm production tools, many of which will be moved to Richardson (News - Alert), TX, to help complete Phase II of RFAB, the industry's first 300 mm analog wafer fabricator. With the completion of Phase II, RFAB will be capable of supporting $2 billion of revenue per year, according to TI.