ADI invests more than US$1 billion in Oregon site expansion

Jessie Shen, DIGITIMES Asia, Taipei 0

Analog Devices recently celebrated its investment of more than US$1 billion to expand its wafer fab in Beaverton, Oregon. The Beaverton site, which was constructed in 1978, is ADI's largest wafer fab by volume and serves customers in crucial sectors including industrial, automotive, communications, consumer, and healthcare.

The facility investment expands cleanroom space to about 118,000 square feet and nearly doubles internal production of products operating at or above the 180-nanometer technology node. It is also expected to create hundreds of new, long-term jobs, a significant increase to ADI's current workforce of approximately 950 in Oregon.

"By expanding ADI's Beaverton facility, we are increasing our production capacity in critical industries, boosting domestic manufacturing in line with the vision of the CHIPS Act, and enhancing the global resiliency of ADI's hybrid manufacturing model," said Vincent Roche, ADI's CEO and chair. "While our investment in Beaverton will facilitate these goals, they will be achieved through the incredible dedication and talent of ADI's existing workforce and further tapping into Oregon's strong talent pool."

Commenting on the announcement, US Senator Ron Wyden of Oregon said, "This announcement strengthens a signature industry in Oregon by solidifying semiconductors' place in the Silicon Forest and beyond, creating statewide impact with new good-paying jobs in Beaverton and rippling out to benefit the entire state economy."

In addition, ADI indicated that its hybrid production model consists of an extensive network of internal factories and external partners. This model enables ADI to manage its operations effectively throughout economic cycles, improves the resilience of its global supply chain, and better meets the requirements of its customers. In order to enhance ADI-owned operations, the company increased its capital expenditures to a high single-digit percentage of revenue in fiscal year 2022 and to date in fiscal year 2023, up from a historical average of approximately 4%. These investments in manufacturing span the globe, including Washington and Massachusetts, as well as Ireland, Thailand, Malaysia, and the Philippines.