Texas Instruments retained ATREG to pursue strategic fab acquisitions in the United States as part of the company’s long-term capacity planning strategy to strengthen its competitive advantage in manufacturing and technology.
Having worked closely with TI for many years, ATREG brought Micron’s operational 300mm fab located in Lehi, UT to the company’s attention to explore if it would be the right fit for their manufacturing strategy. ATREG’s introduction of TI to Micron well in advance of Micron’s decision to publicly announce a sales process provided TI with a distinct advantage in the negotiating process and a significant time advantage to carry out due diligence. The Lehi fab will be TI’s fourth 300-mm fab, joining DMOS6, RFAB1, and soon-to-be-completed RFAB2 in TI’s wafer fab manufacturing operations.
• TI acquired the Lehi, UT fab for $900 million in October 2021.
• Lehi will start with 65nm and 45nm production for analog and embedded processing products and will be able to go beyond those nodes as needed.
• Related underutilization costs of about $75 million per quarter are expected in 2022. First revenue is expected in early 2023.
• TI will take full advantage of the fab’s existing engineering experience and technical skills the team brings in ramping and manufacturing advanced semiconductor processes.
• TI assumes control of the entire workforce preserving some 1,200 jobs and diversifying its geographic footprint while adding a manufacturing fab relatively close to its Texas-based manufacturing hub.
