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Texas Instruments Prepares for Future Growth, Sets November Groundbreaking Date for New Facility

Oct 25, 2004

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TI Prepares for Future Growth, Sets November Groundbreaking Date for New Facility
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DALLAS (October 25, 2004) -- Texas Instruments Incorporated (TI) (NYSE: TXN), with an eye on future demand for its analog and digital semiconductor products, will break ground November 18th on a large new semiconductor manufacturing complex in Richardson, Texas. The 92-acre site, announced as the planned location in June of 2003, is expected to employ up to 1,000 people when fully staffed. TI intends to build some of the world’s most advanced semiconductor designs on 300 millimeter (12-inch diameter) silicon wafers with TI’s 65 nanometer (nm) process technology in the new facility’s clean room.

“Texas Instruments is one of the few semiconductor companies able to leverage the significant advantages that come with closely linking our chip design activity with manufacturing and process technology development,” said Rich Templeton, TI president and chief executive officer. “Our commitment to move forward with the new fab in Richardson attests to the strength of TI and our customers as we focus on the communication and entertainment-centric chip products driving the modern electronics era.”

Much as it did with its first 300-mm facility, DMOS6 in Dallas, TI plans to construct the building and infrastructure ahead of market demand, followed by stages of equipment installation as demand increases.

Investing in the Future of Texas
The selection of Richardson as the location for the plant was the result of a unique collaboration between TI, leaders in the State of Texas, the University of Texas System and several local governmental and economic development entities. To continue investment in the region’s technological future, more than $300 million in funding from a combination of private and public sources will be directed to the Erik Jonsson School of Engineering and Computer Science at the University of Texas at Dallas (UTD) in conjunction with TI’s decision to build in the state. A portion of the funding will come from the Texas Enterprise Fund established by the Texas Legislature for economic development, infrastructure, community development, job training programs and business incentives. TI also worked closely with the city of Richardson, Collin County Community College District, Collin County, and the Plano Independent School District on agreements that made the Richardson site competitive with other worldwide locations.

“TI’s example can serve as a model for other companies as they consider Texas as a site for their next investment. The jobs that will result from this effort demonstrate how the Texas Enterprise Fund can and does work to stimulate our economy,” said Texas Governor Rick Perry.

Fab to Feature Latest Industry Innovations
When completed, the site will represent an expected investment of up to $3 billion by TI over a multi-year period and be one of the most advanced semiconductor manufacturing facilities in the world, producing a wide range of digital signal processing (DSP) and analog-based system-on-chip (SoC) devices for wireless, broadband and digital consumer applications. The fabrication facility, or “fab”, will be the centerpiece of over a million square feet of planned office, manufacturing and support space that includes a clean room measuring more than 220,000 square feet. In addition, the facility will be environmentally friendly, with a host of features such as a rainwater storage pond, native landscaping, and water reuse and recycling expected to reduce the water requirements for the facility. Energy conservation features such as waste heat recovery, natural day lighting, reflective roofing, and solar water heating should reduce energy consumption and resulting emissions. Extensive use of recycled materials and recycling of construction waste will also be employed. The project is already registered with the U.S. Green Building Council’s Leadership in Energy and Environmental Design (LEED) program.

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About Texas Instruments
Texas Instruments Incorporated provides innovative DSP and analog technologies to meet our customers' real world signal processing requirements. In addition to Semiconductor, the company's businesses include Sensors & Controls, and Education Technology. TI is headquartered in Dallas, Texas, and has manufacturing, design or sales operations in more than 25 countries.

Texas Instruments is traded on the New York Stock Exchange under the symbol TXN. More information is located on the World Wide Web at www.ti.com.

Safe Harbor Statement
Statements contained in this press release regarding construction of a wafer fabrication facility and other statements of management's beliefs, goals and expectations may be considered forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995, and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by these statements. The following factors and the factors discussed in TI's most recent Form 10-K could cause actual results to differ materially from the statements contained in this press release: the market demand for semiconductors and the availability of incentives and approvals relating to construction and actual costs of construction and the cost to manufacture wafers. We disclaim any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this press release.