Texas Instruments Increases Outsourcing to UMC

Taipei, April 13, 2011 (CENS)--Texas Instruments (TI) has been increasing contracts to United Microelectronics Corp. (UMC), moving to outsource more contracts this quarter to the foundry heavyweight for building its 45nm OMAP4 processors after placing contracts for making its LBC5 and LBC7 families of mixed mode IC.

Industry executives estimated TI would designate UMC as its primary contract supplier of 28nm OMAP5 processors next year.

The outsourcing surges come after reports that intensive aftershocks that hit Japan last week will delay production resumption at TI's Miho factory, which was crippled by the March 11 quake, until the second half this year. The factory's shipment is estimated to resume in September and its production is likely to return to full capacity two months earlier.

As the two companies have worked together on verifying UMC's process for TI's new products for one year, productions of the chips included in the new contracts are estimated to go smoothly.

TI began working with UMC on developing sub 45nm processes in 2007, when it decided to stop developing advanced processes alone. Between 2008 and 2010, TI had contracted UMC to make its LoCosto and eCosto baseband chips for mobile phones and its OMAP processors.

Sales of TI OMAP4 chips have been robust since the beginning of this year driven by simmering demands for smartphones and tablets. The chip has been chosen by Research In Motion (RIM), the supplier of BlackBerry, to go with its upcoming PlayBook tablet and designed into smartphones from Nokia and LG.