Update from TI on earthquake damage to factories in Japan
The company estimates it will reinstate production in stages, beginning with several lines in May and returning the factory to full production in mid-July, which translates to full shipment capability in September. This schedule could be delayed if the region's power grid is unstable or if further complications prevent the re-start of equipment.
TI is moving quickly to shift production to other fabs and so far has identified alternate manufacturing sites for about 60 percent of Miho's wafer production. Work is underway to increase this percentage by moving the production of additional products.
Specific damage at Miho includes the following:
- The infrastructure systems that deliver chemicals, gases, water and air were damaged, and repairs should be complete in about three weeks.
- Impact to the manufacturing equipment is unclear until continuous power is available from the electric utility.
- Work-in-process was damaged, and the current assumption is that about 40 percent of it can be recovered to support customers.
- The Miho building itself suffered little damage and remains structurally sound.
Recovery began in earnest over the weekend, with teams from Miho, Hiji,
The Miho fab produced about 10 percent of TI's output as measured by revenue in 2010, of which more than a third was DLP and the remainder of which was Analog. TI expects to incur previously unexpected expenses in the first and second quarters for cost of recovery. In addition, the company expects some loss of revenue in the first quarter and more lost revenue in the second quarter. Multiple factors will affect revenue loss, including TI's ability to move production to other factories, existing inventory from which to meet customers' needs, the level of demand from customers taking delivery of products in
TI's fab in Aizu-wakamatsu, about 150 miles north of
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