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Analog Devices Invests US$1B in New Facility Expansion

Analog Devices, Inc., a global semiconductor leader, has recently celebrated its more than US$1 billion investment to expand its semiconductor wafer fab in Beaverton, Oregon. Particularly, the Beaverton site, built in 1978, is ADI’s largest wafer fabrication facility by volume. Thus, it serves customers in critical industries, such as industrial, automotive, communications, consumer, and healthcare.

The facility investment expands cleanroom space to about 118,000 sq-ft and nearly doubles internal manufacturing of products. Most importantly, it runs on the 180-nanometer technology node and above. The investment is likely to create hundreds of new, long-term employment opportunities. Thereby reflecting a significant increase to ADI’s current roughly 950 employees in Oregon.

Increased Capacity for Critical Industries

More than 10% of the total investment focuses on new, state-of-the-art fab tools. Primarily, the purpose is to increase overall efficiency and utilize chemistries that are more environmentally friendly. Despite nearly doubling production output, the facility aims to reduce absolute greenhouse gas emissions by approximately 75%. In addition, it also aims to regulate water usage per production unit by approximately 50%.

“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.

In addition, Roche said, “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, U.S. Senator Ron Wyden of Oregon said, “Today’s good news from Analog Devices marks a significant step to ensure Oregon is taking full advantage of the federal CHIPS Act I worked to pass into law. 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.”

Broad Network of Factories

In addition, the Beaverton facility will host the Semiconductor Advanced Manufacturing University (SAMU). SAMU is a workforce development training center that will offer eight-week courses to train groups of around 25 students each on semiconductor equipment maintenance.

A key driver of ADI’s efforts with the training center is providing training opportunities to many diverse groups within the local community. This includes U.S. military veterans, people re-entering the workforce, and existing ADI factory operators. Moreover, SAMU will enable them to learn semiconductor manufacturing fundamentals and other curriculum to advance their professional development.

ADI’s hybrid manufacturing model is a broad network of internal factories and external partners. This model enables effective management of ADI operations through economic cycles, enhances the resiliency of its global supply chain, and better serves its customer needs.

On top of this, to improve ADI-owned operations, the company has increased capital investment to a high single-digit percent of revenue in fiscal year 2022 to date in fiscal year 2023 from its historical precedent of around four percent.

Most importantly, these manufacturing investments span the globe, including in the states of Washington and Massachusetts, as well as in Ireland, Thailand, Malaysia, and the Philippines.