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Press release content from PR Newswire. The AP news staff was not involved in its creation.

TI to acquire Micron 300-mm semiconductor factory, extending TI’s cost advantage and greater control of supply chain

June 30, 2021 GMT

DALLAS, June 30, 2021 /PRNewswire/ -- Texas Instruments Incorporated (TI) (Nasdaq: TXN) today announced it signed an agreement to acquire Micron Technology’s 300-mm semiconductor factory (or “fab”) in Lehi, Utah, for $900 million.

“This investment continues to strengthen our competitive advantage in manufacturing and technology and is part of our long-term capacity planning,” said Rich Templeton, TI’s chairman, president and CEO.

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. In addition to its value as a 300-mm fab, the acquisition is a strategic move, as Lehi will start with 65-nm and 45-nm production for TI’s analog and embedded processing products and be able to go beyond those nodes as required.

“The Lehi fab is a great asset and a great team. We are excited about the engineering experience and technical skills the team brings in ramping and manufacturing advanced semiconductor processes,” said Kyle Flessner, TI’s senior vice president of technology and manufacturing.

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The companies plan to complete the sale by the end of 2021. Related underutilization costs of about $75 million per quarter are expected in 2022. First revenue is expected in early 2023.

About Texas Instruments

Texas Instruments Incorporated (Nasdaq: TXN) is a global semiconductor company that designs, manufactures, tests and sells analog and embedded processing chips for markets such as industrial, automotive, personal electronics, communications equipment and enterprise systems. Our passion to create a better world by making electronics more affordable through semiconductors is alive today, as each generation of innovation builds upon the last to make our technology smaller, more efficient, more reliable and more affordable – making it possible for semiconductors to go into electronics everywhere. We think of this as Engineering Progress. It’s what we do and have been doing for decades. Learn more at TI.com.

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SOURCE Texas Instruments Incorporated