Texas Instruments 300mm Analog Success Karen Erz SEMICON West 2016 TI Information – Selective Disclosure TI revenue by segment 2015 TI Revenue $13.0B Embedded Processing ($2.79B) • Processors • Microcontrollers • Connectivity • • • • • Other ($1.9B) DLP® products Custom ASIC products Calculators Royalties Legacy wireless products TI Information – Selective Disclosure • • • • Analog ($8.3B) High Volume Analog & Logic Power Management High Performance Analog Silicon Valley Analog Worldwide manufacturing sites Greenock GFAB 150mm, 200mm Freising FFAB So. Portland MFAB 200mm Texas Dallas DFAB 150mm, 200mm DMOS5 200mm SFAB 150mm DHC MEMS 200mm 200mm Chengdu CFAB Miho 200mm 200mm CDAT Taipei TITL Aguascalientes TMX Kuala Lumpur TIM DMOS6 Melaka TIEM 300mm DBUMP RFAB 300mm TI Information – Selective Disclosure Aizu LEGEND Wafer Fabs Assembly / Test Bump Baguio City TIPI Pampanga Clark Bump RFAB is the only fab in the world that is dedicated to advanced analog technology on 300mm wafers Why 300mm Analog? Because the right set of 300mm used tools were available at the right time = Opportunity TI Information – Selective Disclosure 4 Expanding our footprint with 300mm Analog RFAB DMOS6 • Launched in 2009 • Launched in 2001 • 220K square feet of clean room space • 190K square feet of clean room space • 300mm Analog • 300mm; supported wireless products • Currently using 50% of capacity; room to grow • Currently using 25% for Embedded Processing • Next-gen Analog processes begin prototyping in 2016 • Qualified first 300mm Analog product in Nov. 2015 • Will support $5B of analog revenue • Will support $3B in Analog revenue • Together, these two fabs will support $8 billion of annual Analog revenue on 300mm wafers • Majority of future Analog growth will occur on 300mm capacity TI Information – Selective Disclosure Strategic investments in wafer fab capacity Acquired National Semi adding 2 fabs totaling $2.5B of capacity Acquired Qimonda Dresden 300mm tools launching RFAB Phase 2 Acquired Qimonda 300mm equipment enabling the opening of RFAB Acquired 2 wafer fabs and equipment in Aizu, Japan – 200/300mm (Spansion) Acquired Powerchip 300mm tools Acquired 200mm wafer fab and equipment in Chengdu, China 2009 2010 Announced plans to expand 300mm Analog wafer manufacturing in DMOS6 2011 2012 Qualified first 300mm Analog device in DMOS6 2013 RFAB qualifies its first device, production begins Opened RFAB, the world’s first 300mm analog factory TI Information – Selective Disclosure Announced transfer of production from HFAB and HIJI to more advanced TI fabs 2014 2015 2016 Announced plans to transfer of production from GFAB to more advanced TI fabs RFAB Status, Visual Progress 10/13/09 0 Tools TI Information – Selective Disclosure 12/15/09 100 tools 9/12 436 tools First silicon processed 1/15/10 Today ~640 Tools installed, ~215 Tools in inventory Building a stronger manufacturing advantage • Unique manufacturing strategy ensures continuity of supply, supports growth Leverage 300mm capacity to support Analog growth Opportunistically acquire used manufacturing assets • Low depreciation, better return on investment Wafer fab capacity purchased ahead of demand • Reduced time to contribution • Analog technology development delivers differentiated, proprietary processes TI Information – Selective Disclosure Building a stronger manufacturing advantage DMOS6 startup (300mm) DMOS4 200mm conversion RFAB startup (300mm) TI Information – Selective Disclosure Note: TI Capex Goal = 4% of Revenue Why does this model work for TI? • Executive manufacturing management leadership Used tools should always be first option • RFAB – 92% used tools Quick decisions / quick purchases Willingness to take risks • Team effort – everyone bought into the vision of highest return on assets Engineering, Procurement, Logistics, Finance, Planning…. • 130nm is RFAB’s leading edge technology No need for latest and greatest TI Information – Selective Disclosure Challenges / Risks • Engineers need to “make it work” No 300mm equivalent to copy 200mm Analog toolset Every tool won’t match (“need to have” vs. “nice to have”) No warranties • Costs beyond tool purchase Reconfiguration Replacement of missing/broken parts • OEM Involvement often required Installation/upgrades • End of Life Tools TI Information – Selective Disclosure Change requires taking a leap of faith Trust in our leadership The entire TI team is making it work TI Information – Selective Disclosure Thank you! TI Information – Selective Disclosure