TI to acquire Micron 300-mm semiconductor factory, extending TI's cost advantage and greater control of supply chain
Texas Instruments (TXN) announced an agreement to acquire Micron Technology's 300-mm semiconductor fab in Lehi, Utah, for $900 million.
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Rhea-AI Summary
Texas Instruments (TXN) announced an agreement to acquire Micron Technology's 300-mm semiconductor fab in Lehi, Utah, for $900 million. This strategic move adds a fourth fab to TI's manufacturing capacity, enhancing its competitive edge in analog and embedded processing. The Lehi facility will produce 65-nm and 45-nm chips and could scale to additional nodes as needed. Underutilization costs of about $75 million per quarter are anticipated in 2022, with first revenue projected for early 2023. The acquisition is aimed at bolstering TI's long-term capacity planning and control over its supply chain.
Positive
- Acquisition of 300-mm fab enhances manufacturing capability.
- Strategic move to improve competitive advantage in semiconductor production.
- Expected to produce advanced analog and embedded processing products.
Negative
- Anticipated underutilization costs of $75 million per quarter in 2022.
Details
News Market Reaction – TXN
The recorded move for TXN in the trading session of this news was -0.76%.
Data tracked by StockTitan Argus. Session date unavailable.
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DALLAS, June 30, 2021 /PRNewswire/ -- Texas Instruments Incorporated (TI) (Nasdaq: TXN) today announced it signed an agreement to acquire Micron Technology's 300-mm semiconductor factory (or "fab") in Lehi, Utah, for
"This investment continues to strengthen our competitive advantage in manufacturing and technology and is part of our long-term capacity planning," said Rich Templeton, TI's chairman, president and CEO.
The Lehi fab will be TI's fourth 300-mm fab, joining DMOS6, RFAB1 and soon-to-be-completed RFAB2 in TI's wafer fab manufacturing operations. In addition to its value as a 300-mm fab, the acquisition is a strategic move, as Lehi will start with 65-nm and 45-nm production for TI's analog and embedded processing products and be able to go beyond those nodes as required.
"The Lehi fab is a great asset and a great team. We are excited about the engineering experience and technical skills the team brings in ramping and manufacturing advanced semiconductor processes," said Kyle Flessner, TI's senior vice president of technology and manufacturing.
The companies plan to complete the sale by the end of 2021. Related underutilization costs of about
About Texas Instruments
Texas Instruments Incorporated (Nasdaq: TXN) is a global semiconductor company that designs, manufactures, tests and sells analog and embedded processing chips for markets such as industrial, automotive, personal electronics, communications equipment and enterprise systems. Our passion to create a better world by making electronics more affordable through semiconductors is alive today, as each generation of innovation builds upon the last to make our technology smaller, more efficient, more reliable and more affordable – making it possible for semiconductors to go into electronics everywhere. We think of this as Engineering Progress. It's what we do and have been doing for decades. Learn more at TI.com.
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SOURCE Texas Instruments Incorporated
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