Texas Instruments Inc. (TXN) has opened its first
wafer-fabrication plant in China as the chip maker continues to
boost capacity in the midst of strong demand.
In the past two years, it has expanded facilities in the U.S.,
Japan and Germany. Meantime, it is winding down its business of
selling some mobile chips, focusing on analog and embedded
ones.
The China facility, located in the high-tech zone in Chengdu,
has a current production capacity that can support more than $1
billion in annual revenue. The plant's size can double if
necessary.
The company in July said its second-quarter earnings rose
sharply--and it posted a record quarterly operating profit--on a
strong rebound in demand. But results fell short of expectations
and the company said then that new facilities are expected to
"allow it to gain market share."
The sector as a whole has seen strong demand this year. Industry
heavyweights Intel Corp. (INTC) and Advanced Macro Devices Inc.
(AMD) this week posted improved third-quarter results on increased
revenue. Texas Instruments' figures are due Oct. 25.
Its shares were recently down 2 cents at $28.29. The stock has
risen 22% the past year.
-By Jodi Xu, Dow Jones Newswires; 212-416-3037;
jodi.xu@dowjones.com