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Texas Instruments plans to boost Chinese manufacturing

6/12/2013 02:47 PM EDT
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geekmaster
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re: Texas Instruments plans to boost Chinese manufacturing
geekmaster   6/12/2013 4:25:31 PM
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TI seems to be committed to a fab-strong strategy. I wonder how this will turn out for them as many competitors have a fab-lite or fab-less approach.

Peter Clarke
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re: Texas Instruments plans to boost Chinese manufacturing
Peter Clarke   6/12/2013 5:13:43 PM
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@GoGoGeek You call it fab-strong but please note that TI is committed to spending just 4 percent of revenue on capital expenditure. This a comparatively low figure. ST is expected to spend $600 million capex on revenue of $8bn to $9bn in 2013, which is about 6 to 7 percent. Also note that the $1.7 billion, which may include a significant contribution from China or may be additional to that contribution, is spread over 15 years. $100 million per year is not aggressive. $1.7 billion is not much to spend at a wafer fab site these days although it does buy you a reasonable amout of test, assembly and packaging facilities and equipment.

kjdsfkjdshfkdshfvc
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re: Texas Instruments plans to boost Chinese manufacturing
kjdsfkjdshfkdshfvc   6/12/2013 5:54:13 PM
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I say slowly pull out of China. Just a hunch http://bit.ly/IC4m9t

MI6
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re: Texas Instruments plans to boost Chinese manufacturing
MI6   6/12/2013 6:33:33 PM
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FAB Strong perhaps not. TI is a dinosaur in the world of manufacturing. Corporate leaderships/direction is haphazard at best as to what to do with its remaining manufacturing facilities. TI owns mostly Very Old Fabs, and spends Very little to update them. Of the two flagship 300mm Fabs they own, one is 14 years old running analog. The other, the Richardson Fab, is filled with used equipment from Qimonda which basically TI was forced to fill after keeping the shell in Richardson empty for years. A US manufacturing giant at one time it looks to be extinct in the future.

daleste
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re: Texas Instruments plans to boost Chinese manufacturing
daleste   6/14/2013 3:11:08 AM
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Yet another US company adding manufacturing capacity in another country. And we wonder why the US economy is so bad.

geekmaster
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re: Texas Instruments plans to boost Chinese manufacturing
geekmaster   6/14/2013 6:50:47 PM
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We have Non-US companies investing huge dollars in the US like Globalfoundries, Samsung (Qimonda in the past). Yes, there is Intel but I do not understand why there are not more US companies taking advantage of US state incentives like Globalfoundries and Samsung do. Beside of costs, are there better tax incentives or write-offs for going abroad?

daleste
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re: Texas Instruments plans to boost Chinese manufacturing
daleste   6/15/2013 10:49:08 PM
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I think the biggest advantage is lower payroll costs. They also want to get market share in those countries and having manufacturing there seems to help. On the downside, they have a lot of issues with exporting technology and having stable operations.

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