Texas Instruments has been highlighted as a key supplier in the chip shortage, and has been boosting capacity with a new fab about to come online and the purchase of Micron’s fab in Utah.
The company has announced plans to build up to four 300mm fabs at a site in Sherman, Texas. Construction of the first two fabs will start in 2022 with production coming online in 2025.
These will complement TI’s existing 300mm fabs which include DMOS6 in Dallas, Texas, RFAB1 and the soon-to-be-completed RFAB2 in Richardson, Texas, which is expected to start production in the second half of 2022. Additionally, LFAB in Lehi, Utah, is expected to begin production in early 2023.
This highlights the gap between increasing demand and the capacity to meet the demand, with equipment being the main delay, and this traditionally leads to overcapacity in the following years. But the announcement will help to reassure automotive customers in particular that TI is addressing the capacity issue that has hit car production badly over the last year.
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“TI’s future analog and embedded processing 300mm fabs at the Sherman site are part of our long-term capacity planning to continue to strengthen our manufacturing and technology competitive advantage and support our customers’ demand in the coming decades,” said Rich Templeton, TI’s chairman, president and CEO. “Our commitment to North Texas spans more than 90 years, and this decision is a testament to our strong partnership and investment in the Sherman community.”
The site in Sherman can support two further fabs, with a total potential investment of $30bn and up to 3,000 direct jobs over time.
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