TEXAS INSTRUMENTS INC

Texas Instruments designs, manufactures and sells analog and embedded-processing semiconductors used by electronics manufacturers worldwide. Its product mix—power management, signal-chain analog devices and microcontrollers/DSPs—is sold into industrial, automotive and consumer OEMs through direct and distributor channels, generating revenue primarily from product sales and long-lived customer design‑ins that create recurring demand.^[1]

Business Segments

• Analog: Power and Signal Chain products — the largest revenue driver, roughly three‑quarters of total sales.^[2]
• Embedded Processing: Microcontrollers, DSPs and application processors — about one‑fifth of revenue and valued for long software‑led customer relationships.^[2]
• Other: DLP imaging products, calculators and custom ASICs — a small remainder of sales. End‑market emphasis on industrial and automotive (about three‑quarters of revenue).^[2]

Competitive Position

• Market leader in analog and a major supplier of embedded processors, benefiting from scale and a very broad, long‑lived product portfolio that addresses many design needs.^[3]
• Vertical manufacturing capability (owned fabs and process know‑how) and deep design‑in relationships create switching costs and a durable cost/availability advantage for many customers.^[3]

Investment Considerations

• Opportunity: High exposure to industrial and automotive end markets gives more stable, design‑in driven demand versus consumer cycles, supporting steady cash generation.^[2]
• Opportunity: Large, diverse analog portfolio and entrenched customer relationships provide repeatable revenue and scope to sell multiple products into the same designs.^[2]
• Risk: Semiconductor revenue is cyclical and capital intensive; sustained downturns or poor capacity planning can pressure margins and free cash flow.^[4]
• Risk: Geographic and customer concentration, together with trade and regulatory risks, can affect demand and supply chains for certain product lines.^[4]