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 62% 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 digital signal processors (DSPs) and microcontrollers, generates about 21% of sales. The remaining 17% of sales comes from smaller products lines such as calculators and application-specific integrated circuits (ASICs).

Geographic Reach

TI has design, manufacturing, or sales operations in some three dozen countries across Asia, Europe, and North America. The Asia-Pacific region (including Japan) is its leading market, accounting for more than two-thirds of revenue; Europe accounts for 18% of revenue and the US for about 12%.

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. 

Financial Analysis

The bar chart of TI's sales for the past five years goes from peak to valley and back up to peak. Sales for 2014 were $13 million, a 7% increase from 2013, and closer to the $13.9 billion in sales the company posted in 2010. In 2014, the analog and embedded processing segments grew a healthy 13% and 12%, respectively. However, sales of the segment of other products (mainly legacy wireless chips) slipped 14% lower. Power products led the analog growth and microcontrollers and processors paced the embedded segment.

The company followed higher revenue with a 30% increase in net income, which hit $2.82 billion in 2014. (The 2010 number was $3.2 billion). Besides the increased revenue, TI's bottom line benefited from lower restructuring charges.

TI closed 2014 with nearly $3.9 billion in cash flow from operations, compared to $3.38 billion in 2013.

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 (up from 44% in 2006). To that end, the company wound down its wireless business, moving away from products for mobile devices and toward embedded markets, which the company sees as more suitable for growth. The company's R&D spending was lower in 2014, but that reflected the exit from wireless.

The company is also working to expand its customer base, including attracting more small customers. In 2013 its largest customer accounted for just 7% of revenue, compared to nearly a quarter of revenue in 2009.

- Show Less + Show Full Description

Company News and Press Releases

- Show Less + Show More News and Press Releases

TEXAS INSTRUMENTS INCORPORATED

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

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

Become a Vault Basic Member

Complete your Vault Profile and get seen by top employers