Chip Production News

[RebellaE]

Texas Instruments to focus on automotive and industrial as feds raise alarm over chip shortage
TI is working to get several new semiconductor chip-producing plants online over the next year as shortages persist.
Dallas Morning News

The entrance to the Texas Instruments plant In Richardson.(Juan Figueroa / Staff Photographer)

As Dallas-based Texas Instruments brings additional semiconductor plants online in North Texas and beyond, the chipmaker will place a “strategic emphasis” on the automotive and industrial sectors, TI said Tuesday.

“Our industrial and automotive customers are increasingly turning to analog and embedded technology to make their end products smarter, safer, more connected and more efficient,” TI head of investor relations David Pahl said on a call with analysts.

The North Texas chipmaker has seen faster growth in demand for chips in those sectors compared with other markets, and the company expects those trends to continue, Pahl said.

TI attributes strong demand in those two sectors for its higher-than-anticipated fourth-quarter and full-year revenue growth. Revenue for the year was up 27% year-over-year for 2021 at $18.34 billion. Industrial and automotive sales collectively made up more than 60% of the company’s sales, Pahl said.

TI also said it expects to bring new chip-producing plants online over the next year, including its RFAB2 in Richardson and LFAB in Lehi, Utah. It sees additional capacity from those plants helping meet demand in the near term. The recently announced Sherman campus, which could potentially house as many as four chip plants, will provide additional capacity for 2025 and beyond, executives said.

The comments from TI executives came after the U.S. Department of Commerce released a new survey detailing a shortage of semiconductor chips in the country that is fueling inflation and could cause more disruptions at factories.

Demand for semiconductor chips rose 17% from 2019 to 2021, but companies that need to purchase those chips to make their products have not seen a “commensurate” increase in supply, according to the report.

Secretary of Commerce Gina M. Raimondo called the findings of the Commerce Department report “alarming” in an interview with The New York Times and pushed Congress to pass legislation to increase U.S. competitiveness in the semiconductor sector.

TI announced a potential $30 billion investment in its four-factory Sherman campus in November. It’s beginning construction on the first two plants at the site in 2022 with the option to build out more in the future as needed. The company has said it expects production will begin at the first plant in 2025.

Texas Instruments is expected to share more details about plans for the new plants in Sherman on Feb. 3 when it holds its capital management update.

Samsung is also building a massive $17 billion semiconductor chip plant outside of Austin that has been called the largest direct foreign investment in Texas history.

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[Aherpa]

Texas Instruments to focus on automotive and industrial as feds raise alarm over chip shortage
TI is working to get several new semiconductor chip-producing plants online over the next year as shortages persist.
Dallas Morning News

The entrance to the Texas Instruments plant In Richardson.(Juan Figueroa / Staff Photographer)

As Dallas-based Texas Instruments brings additional semiconductor plants online in North Texas and beyond, the chipmaker will place a “strategic emphasis” on the automotive and industrial sectors, TI said Tuesday.

“Our industrial and automotive customers are increasingly turning to analog and embedded technology to make their end products smarter, safer, more connected and more efficient,” TI head of investor relations David Pahl said on a call with analysts.

The North Texas chipmaker has seen faster growth in demand for chips in those sectors compared with other markets, and the company expects those trends to continue, Pahl said.

TI attributes strong demand in those two sectors for its higher-than-anticipated fourth-quarter and full-year revenue growth. Revenue for the year was up 27% year-over-year for 2021 at $18.34 billion. Industrial and automotive sales collectively made up more than 60% of the company’s sales, Pahl said.

TI also said it expects to bring new chip-producing plants online over the next year, including its RFAB2 in Richardson and LFAB in Lehi, Utah. It sees additional capacity from those plants helping meet demand in the near term. The recently announced Sherman campus, which could potentially house as many as four chip plants, will provide additional capacity for 2025 and beyond, executives said.

The comments from TI executives came after the U.S. Department of Commerce released a new survey detailing a shortage of semiconductor chips in the country that is fueling inflation and could cause more disruptions at factories.

Demand for semiconductor chips rose 17% from 2019 to 2021, but companies that need to purchase those chips to make their products have not seen a “commensurate” increase in supply, according to the report.

Secretary of Commerce Gina M. Raimondo called the findings of the Commerce Department report “alarming” in an interview with The New York Times and pushed Congress to pass legislation to increase U.S. competitiveness in the semiconductor sector.

TI announced a potential $30 billion investment in its four-factory Sherman campus in November. It’s beginning construction on the first two plants at the site in 2022 with the option to build out more in the future as needed. The company has said it expects production will begin at the first plant in 2025.

Texas Instruments is expected to share more details about plans for the new plants in Sherman on Feb. 3 when it holds its capital management update.

Samsung is also building a massive $17 billion semiconductor chip plant outside of Austin that has been called the largest direct foreign investment in Texas history.

Good news for the future. Hopefully TI can source their raw materials for their US manufacturing from somewhere other than China.

 

[Watchman]

Too little too late - "The company has said it expects production will begin at the first plant in 2025."

The United States is the birthplace of this technology, and has always been a leader in semiconductor development. However, over the years we have underinvested in production — hurting our innovative edge — while other countries have learned from our example and increased their investments in the industry.

The raw materials for the semiconductor business often come from Japan and Mexico, with the chips made in Taiwan, China and some in the U.S.

The major manufacturers of the semiconductor chips used in cars are overseas, namely Taiwan-based Taiwan Semiconductor Manufacturing Company (TSMC) and United Microelectronics Corporation (UMC). The strain on making and delivering the chips comes down to supply versus demand.

IMO, if (probably when) China invades Taiwan we're screwed . . . . unless GlobalFoundries in Malta can gear up to supply Ford with the chips they need. We should have never allowed this country to depend on other countries for the products we developed and need to stay on top.

 

[RebellaE]

Too little too late - "The company has said it expects production will begin at the first plant in 2025."

The United States is the birthplace of this technology, and has always been a leader in semiconductor development. However, over the years we have underinvested in production — hurting our innovative edge — while other countries have learned from our example and increased their investments in the industry.

The raw materials for the semiconductor business often come from Japan and Mexico, with the chips made in Taiwan, China and some in the U.S.

The major manufacturers of the semiconductor chips used in cars are overseas, namely Taiwan-based Taiwan Semiconductor Manufacturing Company (TSMC) and United Microelectronics Corporation (UMC). The strain on making and delivering the chips comes down to supply versus demand.

IMO, if (probably when) China invades Taiwan we're screwed . . . . unless GlobalFoundries in Malta can gear up to supply Ford with the chips they need. We should have never allowed this country to depend on other countries for the products we developed and need to stay on top.

2 plants are expected to go online this year (Richardson, TX and Lehi, Utah). Its the brand new facilities in Sherman, TX that will not go online until 2025. So yes, more complete relief is a ways away, but some is coming soon. I have no idea if Ford uses TI chips, but its still movement.

 

[HotJombalya]

Better late than never. Agreed with the other posters though. We need to build critical manufacturing here so that we’re not completely brought to our knees at another country’s whims. The world is so dependent on chips and they’re in everything. These times aren’t the last time we’re gonna go through something like this, so let’s get through this one and be prepared for the next one.

 

[RebellaE]

Better late than never. Agreed with the other posters though. We need to build critical manufacturing here so that we’re not completely brought to our knees at another country’s whims. The world is so dependent on chips and they’re in everything. These times aren’t the last time we’re gonna go through something like this, so let’s get through this one and be prepared for the next one.

I agree. I was reading another article this morning about the critical lithium shortage the US is facing and the need to at least build a robust battery recycling industry here to combat sending lithium back overseas in old batteries just to have to reimport that lithium in new batteries.

 

[Watchman]

2 plants are expected to go online this year (Richardson, TX and Lehi, Utah). Its the brand new facilities in Sherman, TX that will not go online until 2025. So yes, more complete relief is a ways away, but some is coming soon. I have no idea if Ford uses TI chips, but its still movement.

Thanks, I hope that happens.

Nov 18, 2021

"Ford said the partnership with GlobalFoundries, a leading international semiconductor company, will advance semiconductor manufacturing, technological development and chips for Ford and other auto companies. Any chips for Ford would likely be made at the GlobalFoundries factory in Malta."

 

[Imlooney]

This is like the government building the planes for WWII but buying all the bombs from Germany. I wonder how that would have turned out.

 

[Mymaverick2021]

Texas Instruments to focus on automotive and industrial as feds raise alarm over chip shortage
TI is working to get several new semiconductor chip-producing plants online over the next year as shortages persist.
Dallas Morning News

The entrance to the Texas Instruments plant In Richardson.(Juan Figueroa / Staff Photographer)

As Dallas-based Texas Instruments brings additional semiconductor plants online in North Texas and beyond, the chipmaker will place a “strategic emphasis” on the automotive and industrial sectors, TI said Tuesday.

“Our industrial and automotive customers are increasingly turning to analog and embedded technology to make their end products smarter, safer, more connected and more efficient,” TI head of investor relations David Pahl said on a call with analysts.

The North Texas chipmaker has seen faster growth in demand for chips in those sectors compared with other markets, and the company expects those trends to continue, Pahl said.

TI attributes strong demand in those two sectors for its higher-than-anticipated fourth-quarter and full-year revenue growth. Revenue for the year was up 27% year-over-year for 2021 at $18.34 billion. Industrial and automotive sales collectively made up more than 60% of the company’s sales, Pahl said.

TI also said it expects to bring new chip-producing plants online over the next year, including its RFAB2 in Richardson and LFAB in Lehi, Utah. It sees additional capacity from those plants helping meet demand in the near term. The recently announced Sherman campus, which could potentially house as many as four chip plants, will provide additional capacity for 2025 and beyond, executives said.

The comments from TI executives came after the U.S. Department of Commerce released a new survey detailing a shortage of semiconductor chips in the country that is fueling inflation and could cause more disruptions at factories.

Demand for semiconductor chips rose 17% from 2019 to 2021, but companies that need to purchase those chips to make their products have not seen a “commensurate” increase in supply, according to the report.

Secretary of Commerce Gina M. Raimondo called the findings of the Commerce Department report “alarming” in an interview with The New York Times and pushed Congress to pass legislation to increase U.S. competitiveness in the semiconductor sector.

TI announced a potential $30 billion investment in its four-factory Sherman campus in November. It’s beginning construction on the first two plants at the site in 2022 with the option to build out more in the future as needed. The company has said it expects production will begin at the first plant in 2025.

Texas Instruments is expected to share more details about plans for the new plants in Sherman on Feb. 3 when it holds its capital management update.

Samsung is also building a massive $17 billion semiconductor chip plant outside of Austin that has been called the largest direct foreign investment in Texas history.

Well who gives a rat's ass what will be all we care about is where's those Dang chips for now, I'm just saying

 

[icegradner]

Too little too late - "The company has said it expects production will begin at the first plant in 2025."

The United States is the birthplace of this technology, and has always been a leader in semiconductor development. However, over the years we have underinvested in production — hurting our innovative edge — while other countries have learned from our example and increased their investments in the industry.

The raw materials for the semiconductor business often come from Japan and Mexico, with the chips made in Taiwan, China and some in the U.S.

The major manufacturers of the semiconductor chips used in cars are overseas, namely Taiwan-based Taiwan Semiconductor Manufacturing Company (TSMC) and United Microelectronics Corporation (UMC). The strain on making and delivering the chips comes down to supply versus demand.

IMO, if (probably when) China invades Taiwan we're screwed . . . . unless GlobalFoundries in Malta can gear up to supply Ford with the chips they need. We should have never allowed this country to depend on other countries for the products we developed and need to stay on top.

Companies moved most production to China/Taiwan because they can maximize profits that way. Simple as that. Same reason they moved production of just about everything else overseas, workers in the west wanted more money, we dug our own graves, now we are living in them.

 

[Ronaldrolin]

I’ve had some experience with semiconductor manufacturing in a past project, where we had to focus heavily on the BOE process to fine-tune the etching process. It’s such a critical part of getting the chips right. Funny how these supply chain issues always seem to sneak up on us, but it’ll be good to see new plants come online to help things stabilize.

 

[Glen Baker LLC]

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