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Texas Instruments (TI) and the U.S. Department of Commerce have signed a non-binding Preliminary Memorandum of Terms for up to $1.6 billion in proposed direct funding under the CHIPS and Science Act to support three 300mm wafer fabs already under construction in Texas and Utah. In addition, TI expects to receive an estimated $6 billion to $8 billion from the U.S. Department of Treasury’s Investment Tax Credit for qualified U.S. manufacturing investments. The proposed direct funding, coupled with the investment tax credit, would help TI provide a geopolitically dependable supply of essential analog and embedded processing semiconductors.
“The historic CHIPS Act is enabling more semiconductor manufacturing capacity in the U.S., making the semiconductor ecosystem stronger and more resilient,” said Haviv Ilan, president and CEO of Texas Instruments. “Our investments further strengthen our competitive advantage in manufacturing and technology as we expand our 300mm manufacturing operations in the U.S. With plans to grow our internal manufacturing to more than 95% by 2030, we’re building geopolitically dependable, 300mm capacity at scale to provide the analog and embedded processing chips our customers will need for years to come.”
Since its founding more than 90 years ago, TI has been advancing technology, pioneering the transition from vacuum tubes to transistors and then to integrated circuits. Today, TI is the largest U.S. analog and embedded processing semiconductor manufacturer. TI chips are essential in nearly every type of electronic device, from cars with advanced safety and intelligence systems to life-saving medical equipment and smart appliances that make homes safer and more efficient.
The proposed direct funding under the CHIPS Act would support TI’s investment of more than $18 billion through 2029, which is part of the company’s broader investment in manufacturing. This proposed direct funding will support three new wafer fabs, two in Sherman, Texas, (SM1 and SM2) and one in Lehi, Utah (LFAB2), specifically to:
- Construct and build the SM1 cleanroom and complete pilot line for first production;
- Construct and build the LFAB2 cleanroom for first production; and
- Construct the SM2 shell.
These connected, multi-fab sites benefit from shared infrastructure, talent and technology sharing, and a strong network of suppliers and community partners. They will produce semiconductors in 28nm to 130nm technology nodes, which provide the optimal cost, performance, power, precision and voltage levels required for TI’s broad portfolio of analog and embedded processing products.
“With this proposed investment from the Biden-Harris Administration in TI, a global leader of production for current-generation and mature-node chips, we would help secure the supply chain for these foundational semiconductors that are used in every sector of the U.S. economy, and create tens of thousands of jobs in Texas and Utah,” said U.S. Secretary of Commerce Gina Raimondo. “The CHIPS for America program will supercharge American technology and innovation and make our country more secure – and TI is expected to be an important part of the success of the Biden-Harris Administration’s work to revitalize semiconductor manufacturing and development in the U.S.”
With a long history of supporting its employees to build long-term, successful careers, TI is also investing in building its future workforce. TI will create more than 2,000 company jobs across its three new fabs in Texas and Utah, along with thousands of indirect jobs for construction, suppliers and supporting industries.
“We are proud to work with Texas Instruments as they build new semiconductor fabs in Sherman and solidify Texas as the best state for semiconductors. Texas Instruments invented the microchip in Texas, and we are honored to be home to TI’s semiconductor manufacturing facilities in Dallas, Richardson and Sherman,” said Texas Gov. Greg Abbott. “With this latest project, TI is building on its more than 90-year legacy in Texas and adding thousands of good-paying jobs for Texans to manufacture critically important technology.”
“By investing in semiconductor manufacturing, we are helping secure this vulnerable supply chain, boosting our national security and global competitiveness, and creating new jobs for Texans,” said U.S. Sen. John Cornyn. “The chipmaking capabilities these resources will enable at Texas Instruments will help the U.S. reclaim its leadership role in the critically important semiconductor industry, and I look forward to seeing more Texas-led advancements in the years to come.”
In order to build a future-ready workforce, TI is enhancing the skills of current employees, expanding internships and creating pipeline programs with a focus on building electronic and mechanical skills. TI has robust engagements with 40 community colleges, high schools and military institutions across the U.S. to develop future semiconductor talent.
“Utah is thrilled that Texas Instruments is expanding its manufacturing presence in the Silicon Slopes, furthering the impact Utahns have on critical semiconductor technology,” said Utah Gov. Spencer Cox. “This investment in semiconductor manufacturing not only creates more jobs, but also brings supply chains back to the United States.”
“This proposed CHIPS funding will further support Texas Instruments’ investment in its new semiconductor fab in Lehi —and enhance Utah’s vital role in our national defense and economic success,” said U.S. Senator Mitt Romney. “I was an original sponsor of the CHIPS and Science Act—which made today’s announcement possible—because in order to compete on the world stage, we must continue to promote innovation, foster scientific talent, and expand research here at home. Texas Instruments’ expanded operations will help make the United States more self-reliant for chips essential to our national security and economy.”
TI has a long-standing commitment to responsible, sustainable manufacturing and environmental stewardship. As part of this commitment, TI continually invests in its fabrication processes and equipment to reduce energy, material and water consumption, and greenhouse gas (GHG) emissions.
The company’s 300mm wafer fabs will be entirely powered by renewable electricity. Additionally, all of TI’s new 300mm fabs are designed to meet LEED Gold standards for structural efficiency and sustainability. TI’s 300mm manufacturing facilities bring advantages in reducing waste and improving water and energy consumption per chip.
TI semiconductors are and will increasingly play a critical role in helping reduce the impact on the environment, helping customers create smaller, more efficient and cost-effective technology solutions that in turn drive continued innovation in electrification and the expanded usage of renewable energy.
Original – Texas Instruments
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Texas Instruments Incorporated (TI) reported second quarter revenue of $3.82 billion, net income of $1.13 billion and earnings per share of $1.22. Earnings per share included a 5-cent benefit for items that were not in the company’s original guidance.
Regarding the company’s performance and returns to shareholders, Haviv Ilan, TI’s president and CEO, made the following comments:
- “Revenue decreased 16% from the same quarter a year ago and increased 4% sequentially. Industrial and automotive continued to decline sequentially, while all other end markets grew.
- “Our cash flow from operations of $6.4 billion for the trailing 12 months again underscored the strength of our business model, the quality of our product portfolio and the benefit of 300mm production. Free cash flow for the same period was $1.5 billion.
- “Over the past 12 months we invested $3.7 billion in R&D and SG&A, invested $5.0 billion in capital expenditures and returned $4.9 billion to owners.
- “TI’s third quarter outlook is for revenue in the range of $3.94 billion to $4.26 billion and earnings per share between $1.24 and $1.48. We continue to expect our effective tax rate to be about 13%.”
Original – Texas Instruments
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Texas Instruments announced a long-term collaboration with Delta Electronics, a global power and energy management manufacturer, to create next-generation electric vehicle (EV) onboard charging and power solutions. This work will leverage both companies’ research and development capabilities in power management and power delivery in a joint innovation laboratory in Pingzhen, Taiwan. Together, TI and Delta aim to optimize power density, performance and size to accelerate the realization of safer, faster-charging and more affordable EVs.
“The transition to electric vehicles is key to helping achieve a more sustainable future, and through years of collaboration with Delta Electronics, we have a solid foundation to build upon,” said Amichai Ron, senior vice president for Embedded Processing at TI. “Together with Delta, we will use TI semiconductors to develop EV power systems like onboard chargers and DC/DC converters that are smaller, more efficient and more reliable, increasing vehicle driving range and encouraging more widespread adoption of electric vehicles.”
“Delta has been developing high-efficiency automotive power products, systems and solutions since 2008 to help reduce transportation-related carbon emissions,” said James Tang, executive vice president of Mobility and head of the Electric Vehicle Solutions business group at Delta Electronics.
“Through the establishment of this joint innovation laboratory with TI, Delta intends to leverage TI’s abundant experience and advanced technology in digital control and GaN to enhance the power density and performance of our EV power systems. With more leading-edge product development and design capabilities, we aim to achieve closer technology exchange and collaboration to accelerate product development and improve product safety and quality. We look forward to furthering our technology leadership and creating a win-win situation in the rapidly developing electric vehicle market.”
Three phases of development for next-generation automotive power solutions
- Phase one for the collaboration focuses on Delta’s development of a lighter-weight, cost-effective 11kW onboard charger, using TI’s latest C2000™ real-time microcontrollers (MCUs) and TI’s proprietary active electromagnetic interference (EMI) filter products. The companies are working together using TI’s products to reduce the charger’s size by 30% while achieving up to 95% power conversion efficiency.
- In phase two, TI and Delta will leverage the latest C2000 real-time MCUs for automotive applications to enable automakers to achieve automotive safety integrity levels (ASILs) up to ASIL D, which represents the strictest automotive safety requirements. Highly integrated automotive isolated gate drivers will further enhance the power density of onboard chargers, while also minimizing overall solution size.
- In phase three, the two companies will collaborate to develop the next generation of automotive power solutions, capitalizing on TI’s more than 10 years of experience in developing and manufacturing products with gallium nitride (GaN) technology.
“The rapid growth of electronics in automotive applications has enabled more feature-rich, efficient and safer vehicles. However, technical challenges remain,” said Luke Lee, president of Taiwan, Japan, Korea and South Asia, Texas Instruments. “Having been in Taiwan for 55 years, coupled with decades of experience in automotive power management, TI has built a strong connection with the local automotive industry. Establishing this collaboration and joint innovation laboratory with Delta is just one more way TI is driving vehicle electrification forward.”
Original – Texas Instruments
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Texas Instruments introduced the industry’s first 650V three-phase GaN IPM for 250W motor drive applications. The new GaN IPM addresses many of the design and performance compromises engineers typically face when designing major home appliances and heating, ventilation and air-conditioning (HVAC) systems.
The DRV7308 GaN IPM enables more than 99% inverter efficiency, optimized acoustic performance, reduced solution size and lower system costs. It is on display at the Power Electronics, Intelligent Motion, Renewable Energy and Energy Management (PCIM) Conference, held June 11-13 in Nuremberg, Germany.
“Designers of high-voltage home appliances and HVAC systems are striving to meet higher energy-efficiency standards to support environmental sustainability goals around the world,” said Nicole Navinsky, Motor Drives business unit manager at TI. “They are also addressing consumer demand for systems that are reliable, quiet and compact. With TI’s new GaN IPM, engineers can design motor driver systems that deliver all of these expectations and operates at peak efficiency.”
Improve system efficiency and reliability with TI GaN
Worldwide efficiency standards for appliances and HVAC systems such as SEER, MEPS, Energy Star and Top Runner are becoming increasingly stringent. The DRV7308 helps engineers meet these standards, leveraging GaN technology to deliver more than 99% efficiency and improve thermal performance, with 50% reduced power losses compared to existing solutions.
In addition, the DRV7308 achieves industry-low dead time and low propagation delay, both less than 200ns, enabling higher pulse-width modulation (PWM) switching frequencies that reduce audible noise and system vibration. These advantages plus the higher power efficiency and integrated features of the DRV7308 also reduce motor heating, which can improve reliability and extend the lifetime of the system.
To learn more about the benefits of GaN technology, read the white paper, “How three-phase integrated GaN technology maximizes motor-drive performance.”
Advanced integration and high power density reduce solution size and costs
Supporting the trend of more compact home appliances, the DRV7308 helps engineers develop smaller motor drive systems. Enabled by GaN technology, the new IPM delivers high power density in a 12mm-by-12mm package, making it the industry’s smallest IPM for 150W to 250W motor-drive applications.
Because of its high efficiency, the DRV7308 eliminates the need for an external heatsink, resulting in motor drive inverter printed circuit board (PCB) size reduction of up to 55% compared to competing IPM solutions. The integration of a current sense amplifier, protection features and inverter stage further reduces solution size and cost.
To learn about designing more efficient, compact motor systems, see the GaN IPM page on TI.com.
This high-efficiency, high-voltage GaN IPM is the latest example of TI innovations to help solve engineering challenges and transform motor designs.
TI’s reliable high-voltage technology at PCIM 2024
Visitors to PCIM can see new products and solutions from TI that are enabling the transition to a more sustainable future with reliable high-voltage technology in Hall 7, Booth 652. In addition to the DRV7308 GaN IPM, TI highlights at PCIM include:
- Next-generation electric vehicle (EV) propulsion system: TI is demonstrating a new 800V, 750kW SiC-based scalable traction inverter system for EV six-phase motors, in collaboration with EMPEL Systems. The demonstration features high power density and efficiency using TI’s high-performance isolated gate drivers, isolated DC/DC power modules and Arm® Cortex®-R MCUs.
- TI’s manager of high-voltage power systems applications, Sheng-Yang Yu, will speak on June 11 in the Markt & Technik panel discussion: “Will SiC ultimately Hold its Own against GaN?”
- TI’s manager of renewable energy systems, Harald Parzhuber, will speak on June 12 in Bodo’s Power Systems panel discussion: “GaN Wide Bandgap Design, the Future of Power.”
Original – Texas Instruments
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Texas Instruments Incorporated reported first quarter revenue of $3.66 billion, net income of $1.11 billion and earnings per share of $1.20. Earnings per share included a 10-cent benefit for items that were not in the company’s original guidance.
Regarding the company’s performance and returns to shareholders, Haviv Ilan, TI’s president and CEO, made the following comments:
- “Revenue decreased 16% from the same quarter a year ago and 10% sequentially, as revenue declined across all end markets.
- “Our cash flow from operations of $6.3 billion for the trailing 12 months again underscored the strength of our business model, the quality of our product portfolio and the benefit of 300mm production. Free cash flow for the same period was $940 million.
- “Over the past 12 months we invested $3.7 billion in R&D and SG&A, invested $5.3 billion in capital expenditures and returned $4.8 billion to owners.
- “TI’s second quarter outlook is for revenue in the range of $3.65 billion to $3.95 billion and earnings per share between $1.05 and $1.25. We continue to expect our effective tax rate to be about 13%.”
Free cash flow, a non-GAAP financial measure, is cash flow from operations less capital expenditures.
Earnings summary
(In millions, except per-share amounts) Q1 2024 Q1 2023 Change Revenue $ 3,661 $ 4,379 (16) % Operating profit $ 1,286 $ 1,934 (34) % Net income $ 1,105 $ 1,708 (35) % Earnings per share $ 1.20 $ 1.85 (35) % Cash generation
Trailing 12 Months (In millions) Q1 2024 Q1 2024 Q1 2023 Change Cash flow from operations $ 1,017 $ 6,277 $ 7,736 (19) % Capital expenditures $ 1,248 $ 5,337 $ 3,336 60 % Free cash flow $ (231) $ 940 $ 4,400 (79) % Free cash flow % of revenue 5.6 % 22.6 % Cash return
Trailing 12 Months (In millions) Q1 2024 Q1 2024 Q1 2023 Change Dividends paid $ 1,183 $ 4,615 $ 4,359 6 % Stock repurchases $ 3 $ 193 $ 3,129 (94) % Total cash returned $ 1,186 $ 4,808 $ 7,488 (36) % Original – Texas Instruments
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Axcelis Technologies, Inc. has received the Texas Instruments 2023 Supplier Excellence Award. The annual award honors companies whose dedication and commitment in supplying products and services meet TI’s high standards for excellence. Recipients are an elite group of suppliers chosen for their exemplary performance in the areas of Cost, Environmental & Social Responsibility, Technology, Responsiveness, Assurance of Supply, and Quality.
“It is a tremendous honor for Axcelis to once again receive the Supplier Excellence Award from Texas Instruments,” said Russell Low, Axcelis’ President and Chief Executive Officer. “This is the fifth time Axcelis has received this prestigious award over the last 11 years and is a testament to our dedication to customer collaboration and success, and our commitment to a strong partnership with Texas Instruments. We look forward to continuing to serve the installed base with value added upgrades and services and participating in Texas Instruments’ expansion plans in the near future.”
Rob Simpson, Vice President of Worldwide Procurement and Logistics at Texas Instruments, commented, “Axcelis’ exceptional commitment to innovation and collaboration has set them apart and helped us achieve our priorities to serve our customers.”
Original – Axcelis Technologies
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Texas Instruments announced new environmental sustainability targets that expand the company’s use of renewable electricity over the next six years, with key milestones to reach 100% in its 300mm manufacturing operations by 2025, 100% in its U.S. operations by 2027, and 100% in its worldwide operations by 2030.
As the company expands its internal manufacturing capacity to support customer demand, these goals will ensure that TI’s industry-leading 300mm wafer fabs, as well as its newest assembly and test sites, will be entirely powered by renewable electricity.
“Our semiconductors play a critcal role in helping our customers developer smaller, more efficient and affordable technology that makes electrification, renewable energy and energy storage systems possible,” said Heidi Means, TI’s vice president of Worldwide Environmental, Safety and Health. “These short- and medium-term energy goals will continue TI’s positive trajectory to reduce our environmental impact while we continue to expand our manufacturing capacity to support our customers.”
TI has steadily grown its use of renewable electricity from a combination of sources including onsite solar and power purchase agreements (PPAs). Since 2020, the company has:
- Continued to increase its absolute use of renewable electricity annually.
- Shifted its operations in the Philippines, which includes two assembly and test sites, to 100% renewable electricity.
- Invested in the company’s first onsite, rooftop solar installation at its Bangalore, India, site.
- Started receiving more than 65MW of renewable electricity from its long-term PPA investments in wind and solar energy projects in North Texas.
Original – Texas Instruments
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Texas Instruments introduced two new power conversion device portfolios to help engineers achieve more power in smaller spaces, providing the highest power density at a lower cost. TI’s new 100V integrated gallium nitride (GaN) power stages feature thermally enhanced dual-side cooled package technology to simplify thermal designs and achieve the highest power density in mid-voltage applications at more than 1.5kW/in3.
TI’s new 1.5W isolated DC/DC modules with integrated transformers are the industry’s smallest and most power-dense, helping engineers shrink the isolated bias power-supply size in automotive and industrial systems by over 89%. Devices from both portfolios will be on display at this year’s Applied Power Electronics Conference (APEC), Feb. 25-29 in Long Beach, California.
“For power-supply designers, delivering more power in limited spaces will always be a critical design challenge,” said Kannan Soundarapandian, general manager of High Voltage Power at TI. “Take data centers, for example – if engineers can design power-dense server power-supply solutions, data centers can operate more efficiently to meet growing processing needs while also minimizing their environmental footprint. We’re excited to continue to push the limits of power management by offering innovations that help engineers deliver the highest power density, efficiency and thermal performance.”
Increase power density and efficiency with 100V integrated GaN power stages
With TI’s new 100V GaN power stages, LMG2100R044 and LMG3100R017, designers can reduce power-supply solution size for mid-voltage applications by more than 40% and achieve industry-leading power density of over 1.5kW/in3, enabled by GaN technology’s higher switching frequencies. The new portfolio also reduces switching power losses by 50% compared to silicon-based solutions, while achieving 98% or higher system efficiency given the lower output capacitance and lower gate-drive losses. In a solar inverter system, for example, higher density and efficiency enables the same panel to store and produce more power while decreasing the size of the overall microinverter system.A key enabler of the thermal performance in the 100V GaN portfolio is TI’s thermally enhanced dual-side cooled package. This technology enables more efficient heat removal from both sides of the device and offers improved thermal resistance compared to competing integrated GaN devices.
To learn more about the benefits of TI’s 100V GaN power stages for mid-voltage applications, read the technical article, “4 mid-voltage applications where GaN will transform electronic designs.”
Shrink bias power supplies by more than 89%
With over eight times higher power density than discrete solutions and three times higher power density than competing modules, TI’s new 1.5W isolated DC/DC modules deliver the highest output power and isolation capability (3kV) for automotive and industrial systems in a 4mm-by-5mm very thin small outline no-lead (VSON) package. With TI’s UCC33420-Q1 and UCC33420, designers can also easily meet stringent electromagnetic interference (EMI) requirements, such as Comité International Spécial des Perturbations Radioélectriques (CISPR) 32 and 25, with fewer components and a simple filter design.The new modules use TI’s next-generation integrated transformer technology, which eliminates the need for an external transformer in a bias supply design. The technology allows engineers to shrink solution size by more than 89% and reduce height by up to 75%, while cutting bill of materials by half compared to discrete solutions.
With the first automotive-qualified solution in this small package, designers can now reduce the footprint, weight and height of their bias supply solution for electric vehicle systems such as battery management systems. For space-constrained industrial power delivery in data centers, the new module enables designers to minimize printed circuit board area.
To learn more about the benefits of TI’s 1.5W isolated DC/DC modules, read the technical article, “How a new isolated DC/DC module can help solve power-density challenges.”
Pushing the limits of power at APEC 2024
These new devices are the latest ways TI is pushing power further and making innovation possible for engineers everywhere. At APEC 2024, TI will showcase the latest automotive and industrial designs for 48V automotive power; the first USB Power Delivery Extended Power Range full charging solution on the market; an 800V, 300kW silicon carbide-based traction inverter; high-efficiency power for server motherboards; and more.- Saturday, Feb. 24-Thursday, Feb. 29: Visit TI in the Long Beach Convention & Entertainment Center, Booth No. 1145. See TI.com/APEC for more information.
- Wednesday, Feb. 28 at 12 p.m. Pacific time: TI General Manager of Industrial Power Design Services Robert Taylor will present an industry session, “To Power Density and Beyond: Breaking Through Barriers to Achieve the Highest Power Density.” He will discuss innovations in packaging, integration and system-level techniques that are making greater power density possible.
- Throughout APEC: TI power experts will lead 20 industry and technical sessions to address power-management design challenges. The full schedule of TI experts’ industry and technical sessions is available at TI.com/APEC.
Original – Texas Instruments
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Texas Instruments Incorporated announced that Reginald DesRoches, president of Rice University, has been elected to TI’s board of directors, effective March 1.
“We’re pleased to welcome Reggie to our board,” said Rich Templeton, TI’s chairman of the board. “With his decades of experience in academia and background in engineering, Reggie understands the impact that technology can have in our lives and the world. We’re confident he’ll be a valuable contributor to our strategic discussions.”
Dr. DesRoches, 56, has had a distinguished career in higher education, including positions of increasing responsibility at two major universities with highly ranked engineering programs. He has been the president of Rice University in Houston, Texas, since 2022 and a professor of engineering since 2017. Prior to his role as president, he was Rice’s Howard Hughes Provost and the William and Stephanie Sick Dean of Engineering. Before his appointment at Rice, Dr. DesRoches was the chair of the School of Civil and Environmental Engineering at the Georgia Institute of Technology (Georgia Tech).
Dr. DesRoches has a Bachelor of Science in Mechanical Engineering, a Master of Science in Civil Engineering and a Doctorate in Structural Engineering from the University of California, Berkeley.
“Reggie has a competitive spirit and a track record of leading organizations to new levels of achievement – which are valued at TI,” said Todd Bluedorn, chair of the board’s governance and stockholder relations committee. “We look forward to working with him.”
Original – Texas Instruments
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Texas Instruments Incorporated reported fourth quarter revenue of $4.08 billion, net income of $1.37 billion and earnings per share of $1.49. Earnings per share included a 3-cent benefit that was not in the company’s original guidance.
Regarding the company’s performance and returns to shareholders, Haviv Ilan, TI’s president and CEO, made the following comments:
- “Revenue decreased 10% sequentially and 13% from the same quarter a year ago. During the quarter we experienced increasing weakness across industrial and a sequential decline in automotive.
- “Our cash flow from operations of $6.4 billion for the trailing 12 months again underscored the strength of our business model, the quality of our product portfolio and the benefit of 300mm production. Free cash flow for the same period was $1.3 billion.
- “Over the past 12 months we invested $3.7 billion in R&D and SG&A, invested $5.1 billion in capital expenditures and returned $4.9 billion to owners.
- “TI’s first quarter outlook is for revenue in the range of $3.45 billion to $3.75 billion and earnings per share between $0.96 and $1.16. We now expect our 2024 effective tax rate to be about 13%.”
Original – Texas Instruments
