Texas Instruments (TI) (Nasdaq: TXN) recently announced that it has reached an agreement with Micron Technology to acquire the latter's 300mm wafer fab in Lehi, Utah, for $900 million.

"As part of our long-term capacity plan, this investment will further strengthen our competitive advantage in manufacturing and technology," said Rich Templeton, TI's chairman, president and CEO.

Following DMOS6, RFAB1 and the upcoming RFAB2 three fabs, the acquired Lehi fab will become TI's fourth 300mm fab. As a strategic move, the 300mm fab will produce both 65nm and 45nm analog and embedded processing chips for TI, which will be upgraded as needed.

Kyle Flessner, senior vice president of technology and manufacturing at TI, said: "The Lehi fab has outstanding assets and a team. We are excited about the engineering experience and technical skills of this team in advanced semiconductor process enhancement and manufacturing."

The two companies plan to complete the agreement by the end of 2021. The plant is expected to have related underutilization costs of $75 million per quarter in 2022, with revenue expected in early 2023.

 About Texas Instruments (TI)

Texas Instruments (TI) (NASDAQ: TXN) is a global semiconductor company that designs, manufactures, tests and sells analog and embedded processing chips for industrial, automotive, personal electronics, communications Markets such as devices and enterprise systems. We are committed to making electronics more affordable and creating a better world through semiconductor technology. Today, each generation of innovation builds on the previous generation, making our technology smaller, faster, more reliable, and more affordable, enabling semiconductors to be widely used in electronics. This is the advancement of engineering. . This is exactly what we have been doing for decades and now.