NEW YORK Texas Instruments Inc TXN.N expects health care to become a $1 billion a year market for its chips in coming years in areas ranging from medical equipment used by doctors to devices implanted in the human body.
The company, which supplies analog and digital chips for everything from industrial equipment to cell phones, currently generates about $150 million to $200 million in annual revenue from the health-care segment.
"This can be a $1 billion a year business for TI at some point in the future," Chief Executive Rich Templeton told the Reuters Global Technology, Media and Telecoms Summit on Thursday, without giving a specific time frame for the target.
He said TI chips can find a place in everything from medical imaging equipment to implanted devices. For example, embedded devices can be used already for neural stimulation to help remediate back pain, he said.
"There's fascinating work being done in the neural stimulation area where you can remediate back pain," he said. "You've even got longer range research being done for depression, anti-smoking, for overeating, all just working with electronics and electronics stimulation."
He said that TI started to focus more closely on health care as a specific market segment about three years ago and since then it has already has seen some areas grow at a rapid rate, while other developments are still a longer-term opportunity.
TI, best known for its cell phone chip business in recent years, has said much of its growth in the next five years will come from areas such as analog chips and less so from wireless, a key growth business for the last ten years.
TI said earlier this month the company could see analog chips, which convert real-world phenomena like sound or light into digital signals, increasing to 60 percent of its revenue in five years from 40 percent today.
Templeton said such a growth rate could mean that its share of the analog market could increase to 20 percent from 13 percent.
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(Reporting by Sinead Carew and Eric Auchard; Editing by Jeffrey Benkoe)
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