TI snaps up bargain chip factories in Japan

TI will keep one factory running in Japan and shift equipment from the other to the U.S.

Texas Instruments on Wednesday agreed to buy two chip factories in Japan, adding to other distressed chip assets its been able to purchase since the global recession hit last year.

The U.S. chip maker will buy the factories and their equipment from Spansion Japan as part of a court-approved plan of reorganization for the Japanese company. Spansion Japan filed for bankruptcy protection last year, after the global recession hurt sales and its parent company, Spansion, also filed for bankruptcy.

TI said one of the factories, an 8-inch (200-millimeter) wafer fab, will remain open in Japan, while equipment from the other factory, a 12-inch (300mm) fab, will be moved to another TI factory in Richardson, Texas.

The 12-inch factory will be kept for future capacity needs, TI said in a statement. The company plans to offer jobs to most workers at the Aizu-Wakamatsu, Japan, factories.

TI did not say how much it paid for the two chip factories, but called the purchase a cost-effective way to increase production capacity for analog semiconductors, its main business. TI chips are used in a range of devices, from e-readers and smartphones to robotics and LED streetlights.

This is the second major purchase of distressed assets by TI over the past 12 months. Last year, the company paid a bargain US$172.5 billion for chip production equipment from a 12-inch fab owned by Qimonda after the DRAM maker filed for bankruptcy in Germany. Early this year, TI said it bought more tools from Qimonda.

In all, the purchases and other spending by TI over the past 24 months will add capacity for US$3.5 billion per year in additional revenue when its all up and running, the company said.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags business issuesinvestmentstexas instruments

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Dan Nystedt

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Tom Pope

Dynabook Portégé X30L-G

Ultimately this laptop has achieved everything I would hope for in a laptop for work, while fitting that into a form factor and weight that is remarkable.

Tom Sellers

MSI P65

This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang

MSI GT76

It really doesn’t get more “gaming laptop” than this.

Jack Jeffries

MSI GS75

As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr

MSI PS63

The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?