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Investments in these operations could total up to $1.69 billion over the next 15 years
June 12, 2013
By: DAVID SAVASTANO
Contributing Editor, Coatings World and Ink World
Texas Instruments Inc. outlined its long-term strategy for manufacturing facilities in Chengdu, China. Future plans include a new assembly/test operation and the expansion of its existing wafer fabrication factory. TI’s investments in these operations could total up to $1.69 billion over the next 15 years and potentially include facilities, manufacturing equipment and land. The government of Chengdu has committed to provide comprehensive support of these plans. The announcement was made in conjunction with officials of the Chengdu Hi-Tech Zone today at the Fortune Global Forum in Chengdu. “The Chengdu Hi-Tech Zone has been an excellent location for TI’s manufacturing investments in China. We believe this region offers significant benefits to TI and the more than 100,000 customers we serve,” said Kevin Ritchie, senior vice president of TI’s Technology & Manufacturing Group. This investment plan does not change TI’s 2013 capital spending forecast. The company continues to expect its capital spending levels to remain about 4% of revenue until revenue exceeds $18 billion and should then range between 4% to 7% of revenue over the long term. Since opening its fab in Chengdu in 2010, TI has made a significant investment in the site, as well as in the surrounding community. TI is near completion of a new classroom building at the TI Project Hope School in rural Nanbu County and has donated 30 TI Project Hope libraries as part of the China Youth Development Foundation’s effort to aid schools in need of being rebuilt or modernized. TI has also donated 50 multimedia classrooms to other rural schools in Sichuan. In addition, TI and its employees donated about 3.7 million RMB ($600,000) to support earthquake relief to Wenchuan and Ya’an in Sichuan. TI has served a broad array of customers in China for more than 27 years and has established 18 offices for sales and applications support, in addition to its wafer fabrication plant in Chengdu and its product distribution center in Shanghai.
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