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Texas Instruments (TI) is making significant investments to expand capacity, supporting the ongoing development of semiconductors in the electronics field for decades to come.
Texas Instruments will build six new 12-inch wafer fabrication plants to internally manufacture our diverse portfolio of analog and embedded processing semiconductor devices.
These new manufacturing plants will expand our global footprint of in-house manufacturing operations (including wafer fabrication and packaging/testing facilities), thereby enhancing supply assurance for our customers.
Kyle Flessner, Senior Vice President of TI’s Technology and Manufacturing Group, recently discussed our in-house manufacturing strategy, including the development of device, packaging, and testing technologies, as well as our global manufacturing operations and semiconductor quality.
Q1
What is Texas Instruments’ long-term manufacturing and technology strategy? How does this strategy benefit our customers?
A core element of our strategy is to enhance our in-house wafer fabrication and packaging/testing capacity through investment, rather than solely relying on external suppliers. We are continuously expanding our in-house capacity to support the growing demand for semiconductors, consistently meeting the development needs of both ourselves and our customers. We are excited to see the new large 12-inch wafer fabrication plant RFAB2 in Richardson, Texas, begin mass production, and we look forward to the launch of the next 12-inch wafer fabrication plant LFAB in Lehi, Utah, later this year.
In addition to increasing our own capacity, we are also developing our own processes, packaging, and testing technologies, which is another key element of our strategy that aids in the efficient launch of new product designs. Our technology team works closely with business and manufacturing operations to ensure that analog and embedded processing products achieve differentiation, manufacturability, technology optimization, and cost-effectiveness early in the design process.
Q2
What is a 12-inch wafer, and why is this size important?
A 12-inch (or 300 mm) diameter is currently the largest and most advanced size for silicon wafers. The larger the wafer, the more semiconductor chips can be produced from each wafer. A 12-inch wafer can accommodate up to millions of individual semiconductor chips, which is at least 2.3 times more than the commonly used but smaller 8-inch wafers.
For over a decade, our strategic focus has been on 12-inch wafer manufacturing. In addition to producing more chips per wafer, 12-inch wafer manufacturing employs more advanced equipment and fully automated manufacturing processes. This significantly improves chip yield, quality, and efficiency, thereby reducing costs and ensuring product supply. By obtaining more chips from a single wafer, we can also reduce waste and lower the water and energy consumption per chip.
Q3
Our wafer manufacturing investments focus on nodes from 45 nm to 130 nm. Can you explain what a technology node is and how it relates to 12-inch manufacturing processes?
A technology node refers to the geometric processes present on the wafer. Reducing the node size increases the density of components and shrinks the size of individual die or chips. However, the size is determined after weighing other factors. If the node you design is very small, significant challenges must be addressed regarding voltage levels, power consumption, thermal performance, accuracy, etc. These challenges may increase costs but do not necessarily provide any advantages for your product.
We have innovative technologies that allow us to improve efficiency and manufacture differentiated products. All of our cutting-edge technology development is done at nodes from 45 nm to 130 nm, which are specifically designed to leverage 12-inch manufacturing processes, providing the ideal cost, performance, power, accuracy, and voltage levels required for our diverse portfolio of analog and embedded products.
Q4
Why is our supply chain control important to customers?
With our in-house manufacturing layout, we can flexibly adjust according to market conditions, scale up supply, and support customers in any market environment. For example, if needed, we can source products from multiple factories. We also establish global product distribution centers near our customers’ manufacturing sites, which helps ensure that we provide the required products at the right time and place for them.
Q5
What measures have our manufacturing plants taken to achieve sustainability?
Texas Instruments has long been committed to responsible and sustainable manufacturing. Nearly a decade ago, we built the world’s first green semiconductor manufacturing plant to receive LEED Gold certification for energy and environmental design, RFAB, in Richardson, Texas. This facility spans 92 acres, and its sustainability goals include reducing the consumption of natural resources, minimizing pollution, and overall reducing the impact on the environment and communities. The benefits of our sustainability initiatives include improved air quality and reduced use of energy, water resources, and building materials. As our manufacturing business expands, we will continue to design plants that meet LEED Gold certification standards in structural efficiency and sustainability.
Additionally, we are making significant investments in reducing greenhouse gas emissions through upgraded plant equipment, emission reduction technologies, and the use of more alternative energy sources. Besides reusing a significant amount of water resources, we also reuse or recycle nearly 90% of waste and leftover materials.
Q6
Is there anything else you would like to add?
I am very excited about the future prospects. We have excellent technology, advanced 12-inch manufacturing processes, and an inspiring culture that gives us the opportunity to manufacture differentiated products for our customers. In-house manufacturing and technology development are unique advantages that enable us to meet the growing demand for semiconductors in the coming decades.
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