LONDON Ė Texas Instruments has said it plans to spend up to $1.69 billion expanding its wafer fab in Chengdu, China and adding an assembly and test operation there. The spending is earmarked to be spread over 15 years and could include the acquisition of land, the creation of facilities, and the purchase of manufacturing equipment, TI (Dallas, Texas) said.
The government of Chengdu has promised to give comprehensive support to the expansion plan, TI added saying that it announced the plan alongside officials from the Chengdu Hi-Tech Zone at a conference there last week.
TI purchased the fully-equipped 200-mm facility in the Chengdu High-tech Zone from Cension Semiconductor Manufacturing Co.in 2010. The Chengdu fab was previously operated by Semiconductor Manufacturing International Corp. on behalf of Cension and TI took on 700 former SMIC and Cension employees that worked at the site and began production of analog ICs. The purchase price of the Chengdu fab was not disclosed at the time.
TI's fab in the Chengdu High-tech Zone was previously operated by SMIC.
The investment plan does not change TI's forecast for capital spending in 2013, the company said. TI has created a formula that sets its annual capital expenditure at 4 percent of annual revenue until annual revenue exceeds $18 billion. After that capex is expected to range between 4 and 7 percent of revenue over the long term.
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