UPDATE 1-TI to double manufacturing capacity of Texas plant

* TI sees doubling capacity in Texas factory

* Bought another $75 million of Qimonda tools

* TI shares down 2.17 pct

NEW YORK, April 27 (Reuters) - Texas Instruments Inc TXN.N has committed to double the capacity of a new factory it is building in Texas for analog chips, which are used in everything from consumer electronics to industrial gear.

The company, which has been suffering from an inability to fill customer orders on time, said it will expand a facility it is already building to create capacity for up to $2 billion worth of chips a year.

Its previous plan had been to create enough capacity in the Northern Texas factory to make $1 billion worth of chips by the end of this year.

The company said it was still on track to meet this target, but did not give a timeline for the completion of the second phase, which still leaves a third of the space in the Texas factory for more expansion.

TI said the factory building cost $320 million to build and on top of this, it is also buying equipment from a bankrupt unit of Qimonda AG.

To kick off the second phase of the plan, it bought another $75 million worth of tools from Qimonda on top of previous acquisitions of more than $172.5 million.

The chip company’s shares were down 59 cents, or 2.17 percent, at $26.57 in midday trading on Nasdaq, even after issuing a better-than-expected outlook for the current quarter and promising investors it was making progress narrowing product delivery times [ID:nN26211188]. (Reporting by Sinead Carew; editing by Andre Grenon)