TI set to start building $3 billion fab early, says report

DALLAS, Texas -- Leading mobile phone chipmaker Texas Instruments Inc. expects to start construction of a $3 billion wafer fab in Richardson, Texas, by the end of 2004, up to a year earlier than a previous schedule, according to an Associated Press report.

The report cited an agreement signed in March 2004 by a senior TI executive and Rick Perry, Governer of the State of Texas, as its source. That agreement said that both parties expected construction to begin by December 31, although as recently as May Kevin March, TI's chief financial officer, said the construction start might be pushed out to the end of 2005.

"Over the coming 12 months, no later than by the end of 2005," said March, TI will begin construction of its second 300-mm fab, in nearby Richardson, Texas, aimed at 90- and 65-nm production, in an EETimes article May 17.

However, under the terms of the March agreement, TI would have to notify the state and provide a new schedule if it changes the start date, according to the AP report.

The project was first announced by company and state officials one year ago. At the time Governor Perry said he had earmarked $50 million for the local university, taking the money from a $295 million fund set aside by the state legislature to boost economic development in the area. About $21.5 million of that was paid in March, the AP report said.

Construction is expected to take 18 months, and the plant will employ 1,000 people.