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Texas Instruments to Expand Assembly / Test Operations in the Philippines

Builds on 28-Years of Experience

May 30, 2007

MANILA, PHILIPPINES (May 3, 2007) – Texas Instruments announced today it will expand its assembly/test operations in the Philippines with a new site that aims to be the most environmentally efficient assembly/test site in the world. At 77,000 square meters in size, the site within the Clark Freeport Zone is expected to eventually employ about 3,000 workers and will double the capacity that TI has in the Philippines. The announcement was made at a ceremony with officials from the Philippines government and senior TI representatives.

“This is an important site for TI because it will add capacity to support our growing business and serve our customers,” said Kevin Ritchie, senior vice president of TI’s technology and manufacturing group. “Once built, we expect to quickly ramp the site with the help of our experienced team in Baguio, where we’ve had assembly/test operations for almost three decades.” Construction is expected to start in the second half of 2007, with initial production in the second half of 2008.

Bing Viera, managing director of TI Philippines added, “As we look toward our 30-year anniversary in the Philippines in 2009, we expect this new facility to be a flagship for the company in terms of quality and output. I thank our kind hosts from the government of the Philippines for working together with TI to make this expansion possible.”

Speaking on behalf of the Philippines, President Gloria Arroyo welcomed the news that TI would grow its operations in the country.

“Today TI is the leading exporter from the Philippines and this announcement demonstrates how successful the relationship has been with TI,” said President Arroyo. “I thank Bing and his management team for considering the Clark Freeport Zone and for making the decision to expand its facilities.”

With an expected investment of $1 billion over ten years, the site will incorporate many of the environmental and energy design features that were first used by TI in the United States at its newest semiconductor facility. Reducing water, energy and waste will be given priority consideration from the start of building design and construction, and it will be the first ground-up facility to be Leadership in Energy and Environmental Design (LEED) registered in the Philippines. The LEED Green Building Rating System™ is a voluntary U.S. standard for developing high-performance, sustainable buildings that assigns a score based upon a variety of factors, including the construction materials used, water and energy efficiency, waste recycling and indoor environmental quality.

TI first entered the Philippines in 1979 in Baguio City, today one of TI’s most sophisticated assembly/test sites. It conducts final assembly and testing of semiconductors for customers in the computer, aerospace, telecommunications, and automotive industries in the United States, Asia, and Europe. In addition to the contributions TI Philippines employees make to the company’s operations, they are a committed part of the local community, devoting money and volunteers to social organizations, cultural institutions and the educational infrastructure of the region.

Assembly and test operations are the final step in semiconductor manufacturing before chips are shipped to customers. Starting with bare silicon chips called “die,” assembly/test sites perform precise packaging operations that serve as the interface between the integrated circuit and the system it supports. Final tests are run on highly sophisticated equipment to ensure the packaged product is operating across a full range of specifications and is ready for shipment.

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