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TI expands analog production capacity with acquisition of wafer manufacturing plant in Japan

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Press release

200mm wafer fab can support more than $1 billion in annual revenue 300mm tools will be moved to RFAB in Texas.

DALLAS (July 14, 2010) - Texas Instruments Incorporated (TI) (NYSE:TXN) said today it will purchase two wafer fabs and manufacturing equipment located in Aizu-Wakamatsu, Japan. The assets currently are operated by Spansion Japan Limited (SJL) and are being acquired under a court-approved plan of reorganization.

This purchase cost-effectively increases the production capacity that TI can offer its customers of analog semiconductors. It includes a 200mm wafer fab currently in operation that is capable of expanding TI's analog revenue by more than $1 billion annually, as well as a second non-operating wafer fab of equal size for either 200mm or 300mm production.  TI will continue running the first fab and will preserve the second fab for future capacity expansion. TI plans to offer employment to almost all of SJL employees in Aizu.

The purchase also includes 300mm production tools, many of which will be moved to Richardson, Texas, to help complete Phase II of RFAB, the industry's first 300mm analog wafer fab. With the completion of Phase II, RFAB will be capable of supporting $2 billion of revenue per year. A portion of the 300mm tools that come with the acquisition in Japan are not needed for TI's advanced analog technology processes and will be re-sold.

"Analog technology is increasingly important as the vital link between the real world and digital domain in all electronic applications," said Gregg Lowe, senior vice president in charge of the company's Analog business. "This latest addition of analog capacity will further increase TI's ability to support our customers' growth, now and in the future."

The new capacity in Japan joins TI's global network of manufacturing sites producing a comprehensive range of analog products, such as amplifiers, data converters, clocks, interface and power management chips. Manufacturers are using TI's analog chips in a vast array of applications, including industrial controls, set-top boxes, eBooks, hard disk drives, smartphones, robotics and LED streetlights.

This acquisition is the most recent in a series of analog 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.

For more information about TI delivery capacity and analog manufacturing investments, please see www.ti.com/aizu-pr.