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Amid an Uncertain US Fab Market, TI Announces 300mm Wafer Fab in Utah
Texas Instruments has announced a second 300-millimeter semiconductor wafer fab in Lehi, Utah, to meet expected growth in IC demand.
www.allaboutcircuits.com/, Feb. 22, 2023 –
On Feb. 15, Texas Instruments (TI) announced its selection of Lehi, Utah, as the site for the construction of a new $11B semiconductor manufacturing facility to be called LFAB2. This new fab will be located next to the existing LFAB1 facility that TI purchased from Micron in 2021.
Production at LFAB1 began in the fourth quarter of 2022. Both facilities will initially support 65nm and 45nm technologies to produce TI's analog and embedded processing ICs.
Goodbye Chip Shortages, Hello Revenue Declines
The severe chip shortages and sharp revenue growth of 26.3% in 2021 have not completely faded from our collective memories. It was those shortages and supply chain issues that initially created the environment for more wafer fab announcements. The value of the U.S.-based semiconductor projects that are planned or under construction through 2030 has been estimated at over $223B.
However, TI is announcing this capacity investment in a different economic climate. In 2022, TI's revenue increased 9% from $18.3B to $20.0B. That growth was twice the industry average of 4%.
Now, Garter is forecasting a 3.6% decline in 2023. In a recent earnings call, TI confirmed that order cancellations had increased, and revenue from its industrial business fell 10% in Q4 compared to 2021. So, TI is clearly feeling the pinch from the economic downturn.
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