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Texas Instruments Incorporated
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About Texas Instruments Incorporated

Texas Instruments sticks to basics -- producing analog and embedded processors, the workhorses of the industry. The company's analog chips manage power in electronic equipment and its embedded processors handle specific tasks in electronic devices. TI's customers, which number about 100,000, use the company's chips for applications that include autos, industrial machinery, consumer electronics, communications devices, and calculators. The company also sticks to basics in production, operating its own manufacturing plants, which it places around the world. International customers generate about 85% of revenue. Another TI basic: TI engineer Jack Kilby was credited as co-inventor of the integrated circuit in the late 1950s. 


Texas Instruments operates through two segments: Analog and Embedded Processing.

The Analog business, which accounts for about two-thirds of sales, includes high-volume analog and logic products, power management semiconductors, and amplifiers and data converters. The company's analog products are used in the personal electronics, automotive, and industrial markets as well as others.

The Embedded Processing segment, which generates about a quarter of sales, makes digital signal processors (DSPs) and microcontrollers. TI's embedded processors range from low-cost microcontrollers used in products such as electric toothbrushes to complex devices used in automotive applications such as infotainment and advanced driver assistance systems.

The remaining revenue comes from the Other segment, which includes digital light processors (DLP), used in projectors to create high-definition images, calculators, application specific integrated circuits (ASICs), and custom semiconductors.

Geographic Reach

China is the biggest single market for Texas Instruments, accounting for about 45% of revenue with other Asia/Pacific countries (including Japan) accounting for nearly 15% of revenue. The US generates more than 15% of TI's sales. The company has facilities for service, sales, and other functions in the US, Europe, and Asia, and operates 20 manufacturing sites in 10 countries.

Sales and Marketing

Texas Instruments has a wide representation of sales channels as well as customers. About 65% of the company's revenue comes through distributors, who keep inventory of TI products on hand. As for customers, its 100 biggest account for about two-thirds of TI's sales.

In terms of markets, TI gets about a third of revenue from industrial, about 25% from personal electronics, about a fifth from automotive, and more than 10% from communications, with enterprise systems and calculators accounting for the remaining revenue.

Financial Performance

After several years of fluctuating revenue, TI has posted three straight years of solid gains.

In 2018, TI's revenue rose 6% to $15.8 billion compared to $14.9 billion in 2017. Growth in its Power and Signal Chain products fueled Analog sales, while higher sales of Connected Microcontrollers boosted Embedded Processing revenue. Other revenue was 9% lower in 2018 from 2017.

Net income increased to $5.6 billion in 2018 from $3.7 billion in 2017. TI paid half as much in federal taxes in 2018 than 2017 because of the Tax Cuts and Jobs Act.

The company's coffers held $2.4 billion in cash and equivalents in 2018 compared to $1.6 billion a year earlier. TI's operations generated $7.2 billion in 2018, while investing activities used $78 million and financing activities used $6.3 billion.


Texas Instruments' focus on its Analog and Embedded Processing units is paying off. They combined to produce 90% of the company's revenue, almost double since 2004. The company believes that analog and embedded processors offer diversity of applications, long product life cycles, and lower-cost manufacturing processes.

More narrowly, TI has identified two markets where analog and embedded processes can generate growing sales over time: industrial and automotive. In 2018, automotive and industrial combined to provide about 55% of TI's revenue, up from 42% in 2013. 

On the manufacturing end, TI is moving to produce more chips on 300-millimeter wafers, which have a 40% cost advantage over standard 200-millimeter wafers. The 300-millimeter operations generated about $4.8 billion in revenue in 2018, some $800 million more than in 2017. 

TI faces strong competition around the world from other chipmakers. The industry consolidation that TI has avoided has created bigger competitors with wider ranges of products and deeper resources. On the other side of the spectrum, small companies with innovative products are capable of snatching market share away.

Trade tensions between the US and China, which accounts for 45% of TI's sales, resulted in slower sales late in 2018. Higher tariffs levied in 2019 could heighten the impact on TI.

Company Background

Clarence "Doc" Karcher and Eugene McDermott founded Geophysical Service, Inc. (GSI) in Newark, New Jersey, in 1930 to develop reflective seismology, a new technology for oil and gas exploration. In 1934 GSI moved to Dallas. The company produced military electronics during WWII, including submarine detectors for the US Navy. GSI changed its name to Texas Instruments (TI) in 1951.

TI began making transistors in 1952 after buying a license from Western Electric. The company went public on the New York Stock Exchange in 1953. In 1954 it introduced the Regency Radio, the first pocket-sized transistor radio. (That year TI also produced the first commercial silicon transistor.)

TI engineer Jack Kilby invented the integrated circuit (IC) in 1958. Working independently, Intel co-founder Robert Noyce developed an IC at the same time, while working at Fairchild Semiconductor; the two men are credited as co-inventors. In 2000 Kilby was awarded the Nobel Prize in Physics for his work.

Texas Instruments Incorporated

12500 TI BLVD
Dallas, TX 75243-0592
Phone: 1 (214) 479-3773

Firm Stats

Employer Type: Publicly Owned
Stock Symbol: TXN
Stock Exchange: , NASDAQ
SVP, Analog Power Products: Niels Anderskouv
EVP and COO: Brian T. Crutcher
Chairman, President, and CEO: Richard K. Templeton
Employees (This Location): 9,800
Employees (All Locations): 29,888

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
Novi, MI
Bloomington, MN
Rochester, MN
Manchester, NH
Bethlehem, PA
Knoxville, TN
Dallas, TX
Double Oak, TX
Fort Worth, TX
Mc Kinney, TX
Plano, TX
Richardson, TX
Sherman, TX
Stafford, TX
Sugar Land, TX
West Lake Hills, TX
Ahmedabad, India
Bengaluru, India
Chennai, India
Mohali, India
Mumbai, India
New Delhi, India
Pune, India
Secunderabad, India
Aizuwakamatsu, Japan
Fukuoka, Japan
Hayami-Gun, Japan
Inashiki-Gun, Japan
Iwaki, Japan
Kyoto, Japan
Matsumoto, Japan
Nagoya, Japan
Osaka, Japan
Saitama, Japan
Yokohama, Japan
Scarborough, Canada
Cesson Sevigne, France
Saint Priest, France
Moscow, Russia
St. Petersburg, Russia
Göteborg, Sweden
Lund, Sweden
Oulu, Finland
Jincheon, South Korea
Glattbrugg, Switzerland