In the market of analog chips radical shifts

The Texas Instruments company is going to purchase the competitor - National Semiconductor. Transaction amount - $6.5 billion cash. After its end TI becomes the third largest producer of semiconductors in the world and strengthens the leadership in the world market of analog chips.

Under the terms of the transaction, announced on Monday, TI will pay $25 for an action to the National exchange. The transaction approved by Boards of Directors of the companies, as expected, will come to the end within six-nine months, to a statement with regulators.

TI makes 30000 analog products used in medical devices, telecommunication and industrial equipment. Its chips are also used in mobile phones for a radio signal amplification and in personal computers - for energy management. Purchase of National will add 12000 analog products to a portfolio of TI company.

Acquisition will make TI the third largest producer of semiconductors in the world with $14.5 billion income. At the same time, according to data of IHS iSuppli research company, Toshiba is rolled away on the fourth place.

As of the end of 2010, Toshiba gained $13 billion income. TI is the largest producer of analog chips in the world. 13.7% of the market, or $6.4 billion in absolute value fall to its share. With National purchase this share will grow to 16.8%, considers iSuppli. Rivals of TI in this market: Analog Devices, Linear Technology and STMicroelectronics.

Rich Templeton, the chairman of TI and its chief executive, said in the statement: "We purchase force and growth. National has an excellent development team and its products in combination with our own will provide to clients the offer of an analog portfolio of an unsurpassed scope and opportunities".

Together with TI sales of products of National will be increased more than ten times. "TI have a much bigger scale of the market, a bigger product portfolio and world sales, - Don Macleod, the chief executive of National said in a joint statement. - It provides the platform for strengthening of strong and very profitable opportunities of analog products of National, in particular - in management of power supply, leading to significant growth".

The analog microcircuits National for energy management, most likely, are very attractive to TI. According to iSuppli, the market of power conditioners in 2010 grew by 36.3% to $9.1 billion in comparison with 32.1% of previous year, having increased the market of semiconductors in general.

One more key advantage for TI – the plants of the microchips National which are located in the State of Maine, Scotland and Malaysia. The companies stated that in plans of TI further work of the plants, each of which has additional opportunities for increase in production.