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Texas, Spansion deals completed

Posted: 03 Sep 2010 ?? ?Print Version ?Bookmark and Share

Keywords:wafer? factories? Japan?

Texas Instruments Inc. announced the completion of the acquisition of two wafer manufacturing facilities in Aizu-Wakamatsu, Japan from Spansion Inc.

One of the two factories will make 200mm diameter silicon wafers that TI will use to make analog chips. The additional capacity may expand TI's analog revenue by more than $1 billion a year, the company said. In Q2 2010, the company's analog revenue was $1.5 billion.

The second factory, capable of either 200mm or 300mm production, will be preserved for future capacity expansion, TI said. Some of the 300mm tools are being shipped to Richardson, Texas, to to help complete Phase II of RFAB, the industry's first 300mm analog wafer fab.

Meanwhile, Spansion has entered into a foundry services agreement with TI for flash memory products and sort services until June 2012 in the Aizu-Wakamatsu fab. The agreement provides Spansion with additional manufacturing flexibility and further supplements the company's production at its Fab 25 in Austin, Texas.

As part of this transaction, TI has obtained certain 300mm process tools from Spansion and a license to certain Spansion IP, including, but not limited to, floating gate NOR unit processes, to enable TI to manufacture Spansion product pursuant to the foundry agreement, and to manufacture TI products, at the facility.

TI offered employment to the Spansion employees in Aizu.

This acquisition is the most recent in a series of manufacturing expansions announced by TI over the past 24 months, which collectively will add capacity for more than $3.5 billion of additional Analog revenue per year when fully operational.

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