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Home > News > Business > Texas Instruments invests $3.2 billion to expand its 12-inch analog IC wafer


Texas Instruments invests $3.2 billion to expand its 12-inch analog IC wafer

Wednesday,Sep 12,2018

 As the size of the analog IC market continues to grow, Texas Instruments, a leading analog IC manufacturer, has planned to invest $3.2 billion in a new plant in Richardson, Texas, USA, primarily for the production of 12-inch wafer facilities for analog ICs.

SourceToday, a technology information and trend analysis media, quoted a special tax consideration application file submitted by Texas Instruments as saying that the $3.2 billion investment is divided into two parts: construction plant and wafer production equipment. Among them, the construction plant investment amount is 500 million US dollars, and the wafer production equipment investment amount is 2.7 billion US dollars.
Although the special tax application has not yet been approved by the local government, if all is planned, the fab will begin construction in 2019 and officially operate in 2022.
The global analog IC market has broad prospects
According to the new 2018 McClean report released by IC Insights, the analog chip market will achieve a compound annual growth rate (CAGR) of 6.6% in 2017-2022, driven by three major applications of power management, signal conversion and automotive electronics. 5.1% of the overall IC market.
In 2017, the global analog chip market was $54.5 billion, and by 2022, the market size will reach $74.8 billion.
According to IC Insights, in 2017, the world's top ten analog IC suppliers accounted for 59% of the analog market, and the top ten analog IC suppliers are European and American manufacturers, namely Texas Instruments, ADI, Skyworks, Infineon, ST, NXP, Maxim, ON Semiconductor, Microchip and Renesas Electronics.
It is worth mentioning that among the top ten analog IC suppliers in the world in 2017, Texas Instruments (TI) once again expanded its top-level analog suppliers with simulation sales of $9.9 billion and 18% market share. leading position. In addition, among the top 10, ON Semiconductor's simulated sales increased the most, with revenues rising 35% to $1.8 billion, accounting for 3% of the market.
TI's analog IC business is outstanding
As the world's leading provider of analog ICs, the analog IC business is TI's primary source of revenue. According to IC Insights estimates, in 2017, TI's simulated revenues accounted for 76% of its $13 billion in total IC sales and 71% of its $13.9 billion in semiconductor revenue.
At the same time, TI's 2018 Q1 financial report showed that revenue in the first quarter was 3.789 billion US dollars, an increase of 11.38%; net profit was 1.366 billion US dollars, an increase of 37.01%. According to Tianfeng Securities' research report, TI's first-quarter performance was mainly due to strong demand for related products in the industrial and automotive markets, especially the analog product line. Analog chip revenue increased 14% year-on-year, mainly due to increased demand for energy and signal chains.
TI's so eye-catching performance is largely due to the characteristics of the analog chip itself and its market, that is, the analog chip has significant differences and a long life cycle.
It is reported that TI is one of the first companies to produce analog chips on 12-inch wafers. The company claims that manufacturing analog ICs on 12-inch wafers can increase the cost advantage of each unpackaged chip by 40% compared to using 8-inch wafers. In 2017, more than half of TI's analog revenue was generated using 12-inch wafers.
Now, TI plans to invest another $3.2 billion in 12-inch wafer facilities for analog ICs, which will put the company in a favorable position in the future market competition.