Progress Overview
The following information is a Year 2000 Readiness Disclosure.
November Update: Texas Instruments achieved its scheduled June 30 Y2K readiness milestone. Corrective action plans have been deployed for essentially all priority items, and contingency plans have been developed. In the days remaining until the Year 2000, TI's Y2K project is focused on activities that enable us to maintain Y2K readiness. Also, TI has completed a detailed Y2K business continuity plan, which includes year-end operations plans. TI will be monitoring the effect of Y2K on TI sites after their clocks roll over to the year 2000. We plan to provide Y2K status updates on this website for the rollover period from December 31 through January 2. The updates will be by region for TI plant sites in Asia, Japan, Europe and the Americas.
Further discussion of the status of TI's Y2K progress is provided for each of the major Year 2000 program areas. We will update this web section as we continue our work.
TI's Year 2000 Milestones*
| Ownership |
Mar. |
1998 |
 |
|
| Inventory |
Jun. |
1998 |
|
|
| Assessment |
Dec |
1998 |
|
|
Corrective Action Deployment & Contingency
Plans |
Jun. |
1999 |
|
|
Maintaining Y2K Readiness & Y2K Business
Continuity Planning |
Sept. |
1999 |
|
|
| * Completion dates are for priority items within each program area. |
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TI's Current Y2K Activities
Maintaining Y2K Readiness
TI has conducted reviews to validate the quality
of the processes used to maintain Y2K readiness in the four major program
areas of information technology, physical plant, products
and extended enterprise. Also, we have conducted selected audits of Y2K
corrective actions and tracked the implementation of contingency plans.
The activities associated with this milestone were essentially completed
as of September 30, 1999.
Y2K Business Continuity Planning
As of September 30, 1999, TI completed its Y2K
business continuity plan (BCP) that includes strategies for responding
to unforeseen Y2K issues, particularly during the period around the end
of December 1999 and the beginning of January 2000. TI continues to refine
the details and walkthrough the processes associated with the BCP at the
TI-wide, business, regional and site levels.
While TI believes it is substantially complete
with its Y2K corrective actions, there is still the possibility of unforeseen
issues occurring that are outside of TI's direct control. Therefore, our
objectives for TI's Y2K BCP are to communicate promptly should there be
any significant Y2K impact to TI and to respond rapidly to any unforeseen
Y2K interruptions so as to minimize the effect on critical TI operations.
The BCP includes year-end plans, such as staffing and site operational
status.
Information Technology
Business Systems
As of June 30, 1999, corrective actions had been deployed for substantially all of TI's legacy business strategic information systems, including manufacturing, marketing, financial and human resources. In the ordinary course of business, TI continues to install new business systems as appropriate. Verification of Y2K readiness is incorporated into the process of implementing these new systems. TI continues to conduct integrated systems tests that verify date data.
Infrastructure
As of June 30, 1999, TI had essentially completed its deployment of corrective actions for critical infrastructure hardware and software that support TI's enterprise-wide networks and servers. Components include voice and data equipment and networks, servers and clients, as well as internet, email and directory services. TI has also deployed an assessment tool and corrective action process for desktop computers.
Electronic Design Automation (EDA)
As of June 30, 1999, TI had essentially completed corrective action deployment for critical hardware and software used in its semiconductor device design and development processes.
Electronic Data Interchange (EDI)
TI supports the use of the EDI formats of EDIFACT D97.A and ANSI X12 4010 for electronic commerce. Both of these standards are Y2K Ready. TI has worked with business partners on other proprietary EDI feeds as appropriate.
TI is using a date inferencing method, also known as "windowing," to interpret year-date information. This is a commonly used technique and enables us to receive year-dates that are less than four digits within a particular range in the "window" and accurately infer the century.
As of June 30, 1999, TI had communicated with its electronic commerce partners, and EDI interfaces have been tested with major customers and suppliers in those cases where format changes were identified. TI believes that its EDI interfaces are Y2K ready.
You may want to view TI's EDI web site.
Physical Plant
Manufacturing
As of June 30, 1999, TI had essentially completed corrective action deployment for manufacturing equipment and software in its wafer fab and assembly/test sites worldwide.
Facilities
As of June 30, 1999, corrective action deployment was essentially complete for TI facilities equipment, which includes environmental controls, safety and security systems, elevators, heating, ventilation and air conditioning systems (HVAC) as well as equipment containing programmable logic controllers (PLCs).
As part of our facilities supplier program, we have contacted local utility providers for major TI sites worldwide and have assessed their Year 2000 readiness efforts in order to minimize the effect of any disruptions in essential services.
Extended Enterprise
Suppliers
TI's Y2K supplier program has attempted to assess the readiness of TI suppliers, focusing on those that could significantly disrupt TI's business operations. We began contacting our suppliers in 1997 to assess their readiness. This effort has included sending Y2K surveys and conducting onsite Y2K reviews with selected suppliers.
TI's assessment of its critical suppliers is essentially complete, and contingency plans have been developed for critical suppliers that were not assessed as Y2K ready by June 30. TI will continue to monitor the progress of those suppliers and will invoke contingency plans as needed.
Customers
TI has discussed Y2K status with selected strategic customers and distributors, and in some cases has conducted face-to-face meetings to assess their Year 2000 progress and share information. We are also reviewing information provided on their web sites, their communications with TI on this topic and Y2K statements in their SEC filings, when available.
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