DALLAS -- Texas Instruments Inc. yesterday became the latest American chip manufacturer to announce plans for a new factory in anticipation of continuing strong worldwide demand.
The company said it planned to spend $750 million to $1 billion through 1998 to build the 624,000-square-foot factory at its headquarters complex in north Dallas that will produce next-generation microchips, which store and process information in computers and other electronic products.
The first phase of the plant will cost $300 million and will be paid out of the company's internal cash flow.
After the announcement, Texas Instrument shares rose 62.5 cents to close at $81.125 on the New York Stock Exchange.
The new factory is needed to keep pace with worldwide demand for microchips, which is surpassing earlier projections, said Jerry R. Junkins, Texas Instruments' chairman, president and chief executive. The company last month raised its 1993 growth forecasts for the U.S. market to 30 percent from 25 percent and for the worldwide market to 20 percent from 17 percent.
Other chip makers are also expanding. Motorola Inc. said in July that it would spend almost $1 billion to build a new laboratory and plant in Austin, Texas. Intel Corp., the nation's largest chip maker, announced in April that it would build a $1 billion addition to its factory in Rio Rancho, N.M., to produce the new Pentium processor, an electronic brain for a new generation of computers. And last month, Advanced Micro Devices Inc. broke ground for a new chip plant in Austin.