Texas Instruments Acquires Wafer Fabrication Facility from Spansion Japan

Texas Instruments Incorporated (NYSE:TXN) has completed its acquisition of two wafer fabs and equipment in Aizu-Wakamatsu, Japan, cost-effectively increasing the company's production capacity. The facility was previously operated by Spansion Japan Limited (SJL) and was acquired under a court-approved plan of reorganization.

The 200mm wafer fab in Aizu is capable of expanding TI's analog revenue by more than $1 billion annually. The second, non-operating wafer fab is capable of either 200mm or 300mm production and will be preserved for future capacity expansion. TI offered employment to all of the SJL employees in Aizu.

The acquisition also included numerous 300mm production tools, many of which are being shipped to Richardson, Texas, to help complete Phase II of RFAB, the industry's first 300mm analog wafer fab.

In addition, TI will provide foundry services for FLASH products and sort services to Spansion LLC through June 2012.

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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