Printer Friendly


 PORTO, Portugal, Jan. 5 /PRNewswire/ -- Texas Instruments Incorporated (NYSE: TXN) and Samsung Electronics Co., Ltd., today announced they have reached a definitive agreement to jointly invest in and operate TI's existing facility in Porto, Portugal. The two companies previously announced their intentions regarding the joint investment when they signed a letter of intent on Dec. 17, 1992.
 The future, jointly-owned company will operate separate, dedicated manufacturing lines to assemble and test each company's own integrated circuits. The plant clean room and other facilities will be upgraded and the present workforce will be maintained. TI and Samsung will share the fixed costs of land and facility, as well as common corporate site services and management.
 Total investment in the facility will exceed 50 million U.S. dollars. In addition, the companies will fund the training of the current workforce to meet the requirements of newly established production lines, equipment and products. TI will remain the majority owner, while Samsung will make a minority investment. An option exists for Samsung to increase its investment over the next three years to obtain a 50 percent ownership in the joint company.
 The planned investment for new capacity and capital upgrades to establish advanced assembly and test production lines will qualify for some level of subsidies from the Portuguese government.
 Samsung Electronics plans to produce advanced DRAM products, such as 4M and 16M DRAMs and to distribute all products manufactured in Porto to the European market. TI will transition current assembly and test high-volume linear and general purpose logic integrated circuits to more complex, advanced logic products. Both production lines are expected to be in operation in the second half of 1994.
 "This agreement is an important step in meeting the continuing needs of the European marketplace," said Roberto Schisano, president of TI Europe. "The joint investment helps both companies address the industry's rapidly increasing capital equipment costs, and strengthens our ability to supply advanced semiconductors for our customers to further differentiate their products."
 Mr. Jae Jun Choi, senior executive managing director of Samsung Electronics, commented, "Through this European manufacturing site, Samsung Electronics can meet European customers' requirements on its DRAMs more rapidly and satisfactorily. Furthermore, we are going to gain access to a very recognized and high-quality workforce, that will ensure the operation of more efficient and productive manufacturing lines for high-quality DRAM products." TI Portugal, established in 1973, currently employs about 800 people. The company recently received the first Portuguese National Quality Award from the Minister of Industry and Energy.
 Texas Instruments Incorporated, headquartered in Dallas, Tex., is a high technology company with sales or manufacturing operations in more than 30 countries. TI products and services include semiconductors: defense electronic systems, software productivity tools; notebook computers and consumer electronics products; custom engineering and manufacturing services; electrical controls; and metallurgical materials.
 Samsung Electronics Co., Ltd., headquartered in Seoul, is a world leader in the electronics sector, with operations in more than 70 countries. The company develops, manufactures and markets audio & video products, household electronic goods, computers & peripheral products, display products, telecommunication & information systems, software tools & semiconductors.
 -0- 1/5/94
 /CONTACT: J.R. Lee or Vera Haire, both of Samsung Semiconductor, 408-954-7000, or Suzanne Andora of Edelman Public Relations Worldwide, 212-7O4-8105/

CO: Texas Instruments Incorporated; Samsung Electronics Co., Ltd. ST: IN: CPR SU: JVT

TM -- NY006 -- 9208 01/05/94 09:02 EST
COPYRIGHT 1994 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1994 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jan 5, 1994

Terms of use | Copyright © 2018 Farlex, Inc. | Feedback | For webmasters