TI Announces Major Semiconductor Expansion Program in Dallas

DALLAS (February 20, 1996) -- Texas Instruments today announced a $2
billion expansion in Dallas over the next 18-24 months that includes its
largest ever semiconductor wafer fabrication facility -- or megafab. The
facility primarily will be dedicated to production of digital signal
processors (DSPs).

The program also includes a new research and development facility and three
employee parking garages. Ultimately, the expansion will create 1,200 new
jobs in Dallas.

"This program is comprehended in TI's recently announced $2.5 billion
capital package for 1996," said Thomas J. Engibous, TI executive vice
president and president, semiconductor group. "We are concentrating more
than 90 percent of our semiconductor capital expenditures in high-growth,
higher-margin areas such as digital signal processors, mixed
signal/analog, and advanced logic products. The new R&D facility will
enhance our efforts to design processes to manufacture the digital
solutions of tomorrow."

Expansion for the new facility, to be called DMOS 6 (Dallas metal-oxide
semiconductor), involves constructing complete brick and mortar, but
equipping it only as customer/market demand dictates. Initially, DMOS 6
will be equipped to produce approximately 10,000 eight-inch (200 mm)
silicon wafers per month. As market demand increases, new equipment can be
added in the existing space to increase output to about 30,000 wafers per
month when the building is fully outfitted.

According to Mr. Engibous, this "fast-fab" approach allows the company to
react 50 percent faster to changes in market conditions, and provides
considerable competitive advantage.

"This approach gives us significant flexibility to quickly react to upside
market demand. It's also more cost effective, and it improves equipment
utilization and minimizes depreciation. That is particularly important
when you consider something as hot as the worldwide DSP market, which grew
more than 70 percent in 1995. Even in that environment, TI's DSP revenues
in the fourth quarter of 1995 were up 90 percent over fourth quarter
1994."

According to estimates by TI and industry analysts, the worldwide market
for digital signal processor solutions is expected to reach $12 billion by
the year 2000, as DSPs continue to pervade electronic end equipment from
cellular phones to digital audio and video systems to automotive
suspension systems. TI's goal is to continue to grow faster than the total
market, thereby extending its current industry leadership position in
DSPs.

DMOS 6 CONSTRUCTION

Both DMOS 6 and R&D 1, the new research facility, will be located on the
main TI campus in Dallas. DMOS 6 will contain more than 1 million square
feet of space, including a 118,000 square- foot cleanroom. Total projected
cost for the facility, including equipment, will be approximately $1.6
billion.

DMOS 6 will produce semiconductors with dimensions of 0.25-micron, or 400
times smaller than the diameter of a single human hair. Eventually, the
facility will produce semiconductors with measurements as small as
0.12-micron, or 800 times smaller than the diameter of a human hair.

Volume production at the new facility is expected by the end of 1997.

R&D 1 CONSTRUCTION

R&D 1 will be a state-of-the-art focal point for work in TI's core
competencies of microelectronics, signal processing and software. It will
encompass 580,000 square feet, including a 51,000 square-foot cleanroom.

The facility principally will be used for development of new semiconductor
manufacturing processes that support .18-micron and .12-micron devices
over the next few years. Eventually, a portion of the cleanroom will house
TI's 12-inch (300 millimeter) development program for the next generation
of silicon wafer manufacturing. Total cost of the project when complete,
including equipment, is estimated at more than $300 million.

Completion of R&D 1 is scheduled for the second quarter of 1997. Equipment
installation will begin early in 1997 with full operation of the cleanroom
expected by the end of 1997.

Together, DMOS 6 and R&D 1 will rank as one of the world's cleanest and
most environmentally sensitive complexes. Systems inside the facilities
will automatically clean exhaust systems, recycle water, reprocess
chemicals and reduce energy consumption.
 
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