About TEXAS INSTRUMENTS INCORPORATED

One of the world's oldest and largest semiconductor makers, Texas Instruments (TI) offers more than 100,000 products. Its largest segment is analog semiconductors, which change real-world signals (such as sound and images) into the digital data streams. Analog product are used to manage power in all electronic devices; TI sells these products to customers in the consumer electronics and industrial markets, among others. The company also makes embedded processors, which can process data from analog chips and handle specific tasks in electronic devices. TI's other products include digital light processing (DLP) chips used in high-definition projectors, custom semiconductors, and calculators. It generates most of its sales from the Asia/Pacific region.

Operations

The company operates through three segments: analog, embedded processing, and other. The analog business, which accounts for about 64% of sales, includes high-volume analog and logic products, power management semiconductors, and catalog analog products such as amplifiers and data converters. The embedded processing segment, which includes application specific integrated circuits (ASICs), digital signal processors (DSPs) and microcontrollers, generates about 22% of sales. The remaining 14% of sales comes from smaller products lines such as calculators and application-specific integrated circuits (ASICs).

In terms of markets, TI gets about 30% of revenue each from personal electronics and industrial uses. Automotive and communications markets account for about 15% each.

TI makes most of its products in facilities in the US, Europe, and Asia.

Geographic Reach

The Asia-Pacific region (including China) is its leading market, accounting for 61% of revenue. Europe accounts for 17% of revenue, the US generates about 12%, and Japan, 9%.

Sales and Marketing

The company markets its products through a direct sales force, as well as via distributors and third-party sales representatives. Distributors generate about 60% of sales. Apple was the biggest single customer in 2015, making up 11% of revenue.

Financial Analysis

Sales for 2015 were $13 million, about even in the dollar amount to 2014. While analog and embedded processor sales increased 3% and 2%, respectively, in 2015, sales of ASICs and DLPs fell 15%.

TI squeezed out a 6% profit increase to just under $3 billion in 2015 with reductions in research and development and sales and general expenses. Its net profit margin was 23%, the fourth time in 10 years it was over 20%.

TI closed 2015 with nearly $4.3 billion in cash flow from operations, compared to about $4 billion in 2014.

Strategy

TI's strategy is to focus on its analog and embedded processing businesses, which the company expects to account for 90% of revenue in the next few years. It was 86% in 2015 and 83% iin 2014.

In a marketing move, the company is positioning its website, TI.com, as a source for buyers of semiconductor products. The company envisions its business customers shifting their buying habits to online sources as consumers have done.

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TEXAS INSTRUMENTS INCORPORATED

12500 Ti Blvd
Dallas, TX 75243-0592
Phone: 1 (214) 479-3773
Fax: 1 (972) 480-6881

Stats

  • Employer Type: Public
  • Stock Symbol: TXN
  • Stock Exchange: NYSE
  • Chairman, President, and CEO: Richard K. Templeton
  • SVP and CFO: Kevin P. March
  • Chairman, President, and CEO: Richard K. Templeton

Major Office Locations

  • Dallas, TX

Other Locations

  • Laguna Beach, CA
  • San Diego, CA
  • Santa Clara, CA
  • Sunnyvale, CA
  • Longmont, CO
  • Washington, DC
  • Deerfield Beach, FL
  • Deland, FL
  • Norcross, GA
  • Schaumburg, IL
  • Warrenville, IL
  • West Chicago, IL
  • Carmel, IN
  • Attleboro, MA
  • Waltham, MA
  • Germantown, MD
  • Portland, ME
  • Novi, MI
  • Bloomington, MN
  • Rochester, MN
  • Bethlehem, PA
  • Knoxville, TN
  • Fort Worth, TX
  • Lewisville, TX
  • Mckinney, TX
  • Plano, TX
  • Richardson, TX
  • Sherman, TX
  • Stafford, TX
  • Sugar Land, TX
  • West Lake Hills, TX
  • Oulu, Finland
  • Bengaluru, India
  • New Delhi, India
  • Secunderabad, India
  • Aizuwakamatsu, Japan
  • Fukuoka, Japan
  • Hayami-Gun, Japan
  • Hiroshima, Japan
  • Inashiki-Gun, Japan
  • Iwaki, Japan
  • Kanazawa, Japan
  • Kawaguchi, Japan
  • Kyoto, Japan
  • Matsumoto, Japan
  • Nagoya, Japan
  • Osaka, Japan
  • Saitama, Japan
  • Sambu-Gun, Japan
  • Yokohama, Japan
  • Moscow, Russia
  • St. Petersburg, Russia
  • Chinchon, South Korea
  • Göteborg, Sweden
  • Lund, Sweden
  • Zürich, Switzerland
  • Delft, The Netherlands
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