To the editor:
In your March 17 article, Analog vendors battle phantom forecasts, you wrote extensively about [Texas Instruments], yet you never talked to anyone here. Had you called, we would have given you insight into important investments we are making, to increase both today's production and future capacity.
While some manufacturers chose to close or consolidate manufacturing facilities in response to the downturn, TI's strong balance sheet enabled us to invest for manufacturing capacity and growth for 2009, 2010 and in the future. Our output from first quarter 2009 to fourth quarter 2009 increased more than 130 percent, and capacity will increase each quarter in 2010.
In addition to planned capital expenditures for 2009, we invested an additional $500 million in the second half of 2009 and are continuing investments into 2010 to grow our analog manufacturing footprint. Projects include the following:
More than 400 new testers.
Start up of a new 800,000-square-foot assembly and test facility in the Philippines.
Nearly 200 tools to expand capacity in our 200-mm wafer fabs.
Tools, equipment and resources to open the industry's first 300-mm analog wafer fab (with only about a third of the potential capacity being deployed in RFAB today).
While TI manufactures 90 to 95 percent of its analog products in-house, TI's flexible manufacturing strategy of employing both internal manufacturing expertise and strong relationships with multiple foundries and subcontractors gives us a unique advantage in meeting the demands of our customers. These relationships have enabled us to gain incremental analog wafer fab capacity in our high-demand process technologies, in addition to more than one billion units per quarter of additional assembly/test capability.
As a result, lead times are improving, and we are continuing to close the gap. Just as important is that these long-term capacity investments assure that we can support our customers' long-term growth for years to come.
Customers place their trust in us, and TI is committed to continued investments to help ensure the continuity of supply for analog products. We're in it for the long haul.
Worldwide Analog Media/Analyst Relations
Texas Instruments Inc.