TI looks to bring test and assembly in house with $3bn Malaysian expansion

TI looks to bring test and assembly in house with $3bn Malaysian expansion

Business news |
By Nick Flaherty

Texas Instruments is to spend $3.16bn (MYR14.6bn) on two new back-end assembly and test plants in Malaysia to bring the majority of operations in-house.

The assembly and test sites are a key part of the company’s internal manufacturing operations and are undergoing continuous expansion, modernization and automation to support the new 300mm fabs being built in Richardson and Sherman, Texas.

The new sites in Melaka and Kuala Lumpur  will see internal assembly and test operations grow to more than 90% by 2030 for greater control of supply and geopolitically dependable capacity, says the company, rather than using external Outsourced Semiconductor Assembly and Test (OSAT) suppliers.

The factories will feature advanced factory automation to assemble and test hundreds of millions of analog and embedded processing chips a day at full capacity. Production from both sites is expected to begin as early as 2025. The global manufacturing footprint includes 12 wafer fabs, seven assembly and test factories, and multiple bump and probe facilities across 15 worldwide sites.

TI points out it has the ability to source more than 85% of products from multiple sites, giving the ability to increase flexibility and ensure business continuity and quality. This was a key issue during the pandemic, where the test and assembly capacity was a bottleneck.

“The investments we’re making to expand our internal manufacturing operations, combined with our company’s in-house R&D expertise across packaging, product design and technology development, enable TI to innovate and scale across our product portfolio. This unique mix of expertise gives our customers the ability to differentiate their products through the thousands of products, packaging and configuration options TI has available,” said Mohammad Yunus, senior vice president, Manufacturing Operations.

“These investments are part of TI’s long-term strategy to expand our internal manufacturing capacity to support the increasing need for semiconductors and provide greater assurance of supply,” said Yogannaidu Sivanchalam, vice president, Assembly and Test Manufacturing Operations at TI. “TI is proud to have been operating in Malaysia for more than 50 years and our decision to expand our back-end manufacturing is a reflection of the talented and growing team in Malaysia that will be critical to TI’s future.”

“Owning our manufacturing processes and facilities is a unique advantage we have as a company,” Yunus said. “Investing in assembly and test operations will help us build the capacity our customers need for the long term.”


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