Semiconductor supplier Texas Instruments' manufacturing facility in Miho, Japan, about 40 miles northeast of Tokyo, suffered substantial damage during the March 11 earthquake.
TI's facility in Aizu-wakamatsu, about 150 miles north of Tokyo, was also damaged in the earthquake, but equipment there already is being re-started and full production is estimated by mid-April - assuming a stable power supply. The company's third facility in Hiji, about 500 miles south of Tokyo, was undamaged and was running at normal capacity.
RECOVERY AT MIHO
TI plans to restart Miho 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 manufacturing sites and so far has found alternate manufacturing sites for about 60% of Miho's wafer production.
Specific damage at Miho includes:
• 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 TI estimates that about 40% of it can be recovered to support customers.
• The Miho building itself suffered little damage and remains structurally sound.
TI brought in teams from its locations in Hiji, Dallas, and Malaysia to assist personnel in Miho with the recovery effort. Miho produced about 10% of TI's output as measured by revenue in 2010; one-third of the production was DLP and the remainder was analog.
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