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Limited Production Resumes at One TI Fab in Japan

Texas Instruments (TI) says one of its fabs in Japan, damaged by the March 11th earthquake, has resumed production, and another fab that was also damaged will return to production in July, providing there is a steady supply of power.

TI's fab in Aizu, about 150 miles north of Tokyo, has resumed initial production and should be in full production by mid-April or earlier.

Repairs at TI's fab in Miho, about 40 miles northeast of Tokyo, were completed on the systems that deliver water, gases, chemicals and air, and the clean room was recertified, according to TI. Additionally, more than 90 percent of the equipment has been electrically checked out.

It's estimated initial production lines at Miho will resume in mid-April, and full production will resume in mid-July. This means full shipment capability will resume in September.

Production recovery schedules at both Miho and Aizu are dependent on a stable source of electrical power.

TI noted that the state of supply for raw materials remains "dynamic," especially for components used in rigid substrates and for 300-millimeter wafers. Operations of some existing suppliers are just beginning to resume. TI reported that it is working closely to avoid potential supply chain disruptions.

TI added that it was working to make sure that it had an independent supply of raw materials, stating that the scope of the challenges to the supply chain is still unknown.

TI expects some loss of revenue in the first quarter, and more lost revenue in the second quarter. TI added that their ability to move production to other factories, availability of existing inventory to meet customers' needs, the level of demand customers in Japan, access to raw materials, and the ability to incrementally increase production each month at Miho will impact its revenue in the first and second quarters.

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