TXN · Earnings call · 2026Q3T · Full report

Manufacturing Capacity Expansion

TEXAS INSTRUMENTS INC · 2026-10-21 · Importance 46 · Surprise 42

Management said TI was continuing to ramp factories and had clean-room space available to support demand growth. Tool lead times were extending, particularly for back-end equipment, and TI planned to add tools in both back-end and front-end operations as demand warranted. The company said it had completed long-lead-time clean-room and subfab investments and reserved equipment slots for 2027 and beyond, allowing it to adjust installation rates to the growth it intends to support. TI also cited a new, large Malaysia assembly-and-test site that was ramping quickly, with products being qualified and capacity expected to increase each quarter.

Key facts

• TI said it had reserved equipment slots for 2027 and beyond and would modulate incoming tools based on the revenue growth it wanted to support.
• TI was ramping a newly built, largest IT site in Malaysia quickly; parts were being qualified and ramped, with capacity expected to increase each quarter.
• TI said it had ample clean room and strong demand and intended to fill that clean room with back-end tools and later front-end tools.
• TI said tool lead times were extending, especially for back-end tools, creating a tactical constraint on its 2026 investment execution.
• TI said it could invest in clean room and assembly-and-test facilities to support customer growth and would continue ramping them.
• TI said it saw no clean-room or infrastructure gating item constraining expansion, and expected front-end and back-end capacity to remain balanced.
• TI said longer-term capacity planning considered the remainder of the decade, including future tool slots and potentially new clean rooms, to support a range of market scenarios.
• TI said it was not receiving as much OSAT partner capacity as it wanted and had increased its use of external capacity during the year.