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Manufacturing
Over the last few years, we have strengthened our analog manufacturing position through a series of strategic investments in manufacturing equipment and capacity. Much of this capacity has been added at a fraction of its original cost. Separately, we also acquired additional capacity through our 2011 acquisition of National Semiconductor. Together, these actions will add capacity for more than $7 billion of additional annual revenue.
In addition, as the manufacturing strategy has become more focused on analog and embedded processing, it allows us to get significantly longer usage from our capacity investments. Whereas an advanced CMOS digital factory might only have shelf life of two to three years before it required upgrading to the next process technology node, in analog and embedded processing you can get 10 to 20 years of usage from that factory. This has enabled us to stabilize our depreciation, allowing us to have a much lower need for capital and a more low-cost manufacturing footprint moving forward.
With this new capacity, we can give our customers what they need, when they need it.
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