Profile: Texas Instruments Inc (TXN.OQ)
13 Mar 2014
Texas Instruments Inc. (TI), incorporated on December 23, 1938, designs and makes semiconductors that the Company sells to electronics designers and manufacturers all over the world. The Company has four segments: Analog, Embedded Processing, Wireless and Other. The Company's products, more than 100,000 orderable parts, are integrated circuits that are used to accomplish many different things, such as converting and amplifying signals, interfacing with other devices, managing and distributing power, processing data, canceling noise and improving signal resolution. In December 2013, TI acquired a building in the Chengdu Hi-Tech Zone from UTAC Chengdu Ltd.
The Company sells catalog and, to a lesser extent, custom semiconductor products. The life cycles of catalog products generally span multiple years, with some products continuing to sell for decades after their initial release. The life cycles of custom products are generally determined by end-equipment upgrade cycles and can be as short as 12 to 24 months.
Analog semiconductors change real-world signals - such as sound, temperature, pressure or images - by conditioning them, amplifying them and often converting them to a stream of digital data that can be processed by other semiconductors, such as digital signal processors (DSPs). Analog semiconductors are also used to manage power in every electronic device, whether plugged into a wall or running off a battery. The Company's Analog segment includes High Volume Analog & Logic (HVAL), Power Management (Power), High Performance Analog (HPA) and Silicon Valley Analog (SVA).
HVAL products include both high-volume analog and logic products. High-volume analog includes integrated analog products for specific applications, including custom products. End markets for high-volume analog products include communications, automotive, computing and many consumer electronics products. Logic includes some commodity products marketed to many different customers for many different applications.
Power products include both catalog and application-specific products that help customers manage power in any type of electronic system. The Company designs and manufactures power management semiconductors for both portable devices (battery-powered devices, such as handheld consumer electronics, laptop computers and cordless power tools) and line-powered systems (products that require an external electrical source, such as computers, digital TVs, wireless basestations and high-voltage industrial equipment).
HPA products include catalog analog products, such as amplifiers, data converters and interface semiconductors, that the Company markets to many different customers who use them in manufacturing a wide range of products sold in many end markets, including the industrial, communications, computing and consumer electronics markets. HPA products generally have long life cycles, often more than 10 years.
The Company's Embedded Processing products include the Company's DSPs and microcontrollers. DSPs perform mathematical computations almost instantaneously to process or improve digital data. Microcontrollers are designed to control a set of specific tasks for electronic equipment. Sales of Embedded Processing products generated about 15% of the Company's revenue for the year ended December 31, 2012. Embedded Processing products used in many different applications and application-specific Embedded Processing products used in communications infrastructure equipment and automotive applications.
During 2012, the Company's Wireless products consisted of OMAP TM applications processors, connectivity products and baseband products. The Company concentrated its Wireless investments on OMAP applications processors and connectivity products for the smartphone and consumer tablet markets. The Company focuses on its OMAP applications processors and connectivity products on embedded applications with long life cycles .
Embedded OMAP applications processors, which often use a standard operating system such as Android, Linux, QNX or Windows, are used in applications that are multi-function, need a graphically intensive user interface and often are connected to the Internet. Embedded connectivity products include low-power wireless network standards like Zigbee , and other technologies,such as Bluetooth , WiFi, GPS and Near Field Communications.
Other includes revenue from the Company's smaller product lines, such as DLP (primarily used in projectors to create high-definition images), custom semiconductors known as application-specific integrated circuits (ASICs) and calculators. It also includes royalties received for the Company's patented technology that the Company licenses to other electronics companies and revenue from transitional supply agreements
The Company competes with Analog Devices, Inc.; Fairchild Semiconductor Corporation; Freescale Semiconductor, Inc.; Infineon Technologies AG; Intersil Corporation; Linear Technology Corporation; Maxim Integrated Products, Inc.; NXP Semiconductors N.V.; QUALCOMM Incorporated; Richtek Technology Corporation; STMicroelectronics NV; Atmel Corporation; Microchip Technology, Inc.; Renesas Electronics Corporation; Broadcom Corp.; CSR plc; Intel Corporation; Marvell Technology Group, Ltd.; NVIDIA Corporation; and Samsung LSI.
Texas Instruments Inc
12500 TI Boulevard,
P.O. Box 660199
DALLAS TX 75266-0199