Here Comes China, the Chipmaker

Its foundries are churning out lower-priced chips and threatening to take market share from the world's semiconductor giants

Three years ago, semiconductor giant Texas Instruments (TXN ) seemed to have run out of options. As chip technology took another leap, it needed to spend $300 million to $400 million to upgrade its factories. An alternative: Look for a contract chip manufacturer willing to spend on a new production line to finish TI's semiconductors.

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