The company revealed the information during a conference call to disucss its 4Q19 and full-year financial results.
Both fabs – one in north Dallas and the other at Sherman, Texas – are more than 50 years old. "This will be a multiyear plan and is expected to be completed no earlier than 2023 and no later than 2025," said Dave Pahl, head of investor relations at TI, during the call. The location of the next 300mm wafer fab was announced in 2019 (see TI tips site for next 300mm analog wafer fab ). Bulldozers and cranes are not on the site Pahl said.
Elsewhere it was reported that there would be no significant lay-offs as a result of the closures with the expectation that workers could transfer to other functions inside the company. Pahl said about $1.5 billion of products are made at the two fabs each year but that much of this would transfer to 300mm wafer fabs with an improvement in productivity and economics.
Pahl added that the Richardson building shell is expected to be completed by the end of 2021 ready for tools to be brought in response to market demand.
TI made a net profit of $1.07 billion on revenue of $3.35 billion in 4Q19. The revenue was down 10 percent and the profit down 14 percent on the same quarter in the previous year. For the full year TI made a net profit of $5.02 billion on revenue of $14.38 billion. The company gave an outlook for 1Q20 of revenue between $3.12 billion and $3.38 billion or $3.25 billion at the mid-point.
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