Texas Instruments Gains Analog Leverage With Natl Semi Buy |
| Wall Street Journal - Apr 5, 2011 |
Texas Instruments Inc.'s (TXN) pricey $6.5 billion deal to buy National Semiconductor Corp. (NSM) strengthens the company's analog chip holdings, but questions remain as to how disruptive the merged entity will be to the $42 billion analog market.
The deal adds 12,000 products to Texas Instruments' analog business, which will now represent more than half of the company's revenue. The combination of National Semiconductor will enable TI to compete better in areas that it is currently not strong, such as industrial power management, which comprises about half the total analog market, according to one research firm.
"Analog and particularly analog catalog portfolios take a long time to build," said Texas Instruments Chairman and Chief Executive Rich Templeton. "In any given year, TI introduces about 500 new analog products. With this acquisition, we add 12,000 products all at once."
He said National Semiconductor's exposure to the industrial market will benefit TI, whose power-management products are geared more toward portable devices.
"The bottom line is that the combination of TI and National means we can engage with customers in application segments where we have no or minimal engagement today," Templeton said.
Read Full Article from Wall Street Journal
- Posted: 2011-04-05 12:28:13
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