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Technologies of Texas Instruments are presented in a range of decisions and products - from cars to lighting fixtures, from tablet computers to devices, household appliances from to medical equipment derricks.
Performance indicators
2020: Revenue growth to $14.46 billion, net profit - to $5.6 billion
According to the results of work in 2020, Texas Instruments revenue increased slightly and amounted to $14.46 billion for the company against $14.38 billion in 2019.
Most of Texas Instruments' sales in 2020 came from analog chips - we are talking about the amount of $10.87 billion, which is 6% higher than a year ago.
Embedded chip revenues fell 13% to $2.57 billion. The rest of the combined products brought the American chipmaker a little more than $1 billion, which is 17% less compared to 2019.
At the end of 2020, Texas Instruments registered a net profit of $5.6 billion, while in 2019 such a profit amounted to about $5.02 billion.
Profit in the analog chip division in 2020 rose 10% to $4.91 billion. Profit in the embedded market decreased by 18%, to $743 million. In the category "Other" [sources of income - approx. TAdviser] profit decreased even more - by 29% to $239 million.
The financial reporting notes that Texas Instruments was able to end the year with growing revenues, despite the COVID-19 coronavirus pandemic, due to which chip production was limited. In particular, some semiconductor factories produced products in a reduced volume or did not work at all for some time, since they were quarantined.
Despite the optimism of Texas Instruments, investors are skeptical, as can be seen from the decrease in the company's exchange quotes. Observers attribute the fall to concerns over chip shortages amid high demand from Texas Instruments customers.
On the day the reports were published, the chipmaker's shares fell 2% at the close of trading in New York. At the same time, Bloomberg notes that over 2020, Texas Instruments securities have risen in price by 28%.[1]
History
2021: Purchase of a chip factory by Texas Instruments for $1.5 billion
At the end of June 2021, Micron Technology announced the sale of its plant located in Lehigh (Utah, USA). This company, specializing in the production of 3D SOUNDoint memory, is bought by Texas Instruments. The value of the transaction is estimated at $1.5 billion. More details here.
2019
Among the largest companies in the semiconductor industry in terms of revenue
Revenue - $14.38 billion; profit - $5.02 billion
Texas Instruments revenue in 2019 decreased to $14.38 from $15.78 billion a year earlier. The main reason for the decline lies in the fall in demand for embedded solutions: their annual sales decreased by 17% to $2.94 billion.
At the same time, revenue from the sale of analog chips decreased by 5% (from $10.8 billion in 2018 to $10.22 billion in 2019).
In 2019, the American semiconductor manufacturer completed with a net profit of $5.02 billion against the $5.58 billion profit recorded in 2018.
Profit from sales of analog chips decreased by 12% and reached $4.48 billion in 2019. In the embedded chip segment, profit decreased even more - by 25% to $907 million.
Judging by the data from the financial account, the lion's share of Texas Instruments sales is brought by orders from manufacturers of industrial equipment. In addition, the company is one of the largest suppliers of semiconductor solutions for the automotive industry. Unlike Intel and Qualcomm, the company does not produce chips that take hundreds of millions of dollars to develop and are rapidly becoming obsolete. This business model makes Texas Instruments less vulnerable to sudden fluctuations in demand or competitive pressures.
At the same time, sales of the company decreased in each quarter of 2019. Texas Instruments warned that the drop in chip demand could last several more quarters, as China's economic growth slows and manufacturers face the effects of a protracted trade conflict between the United States and China.
On the day of the publication of the 2019 statements, Texas Instruments shares first rose by about 2% to the close of the exchange, and in electronic trading, quotes fell by 1.5%, despite the fact that the company's revenue and profit were higher than Wall Street expectations.[2]
2018: Revenue - $15.78 billion; profit - $5.59 billion
Texas Instruments completed 2018 with sales of $15.78 billion against $14.96 billion a year earlier. Most of the company's business is related to the production of analog chips used, for example, for measuring sound, temperature, etc., with the subsequent translation of this data into digital format.
On analog chips, Texas Instruments earned $10.8 billion in 2018, which is 9% higher than a year ago.
Revenue from the implementation of embedded solutions that can be found in IoT systems, personal electronic devices, etc., in 2018 amounted to $3.55 billion, which is 2% more than a year earlier. The remaining businesses brought the chipmaker a total of $1.4 billion in turnover.
Texas Instruments' annual net profit was $5.59 billion, and in 2017 it amounted to $3.61 billion. The company's profit in the analog products segment increased by 14% to $5.11 billion, and the profit from sales of embedded chips increased by 5% to $1.2 billion.[3]
 | Demand in China was lower than in other regions, said David Pahl, vice president and director of investor relations at Texas Instruments, in a conversation with analysts at a conference on the publication of financial statements. - Judging by the signs that our customers demonstrate, this weakness is primarily caused by increased caution due to tense trade relations. |  |
The company also noted that orders from manufacturers, especially in the Middle Kingdom, were low in 2018, while previously demand was high thanks to the deployment of fifth-generation (5G) networks.
After the financial results were published, the value of Texas Instruments shares remained almost unchanged. In 2018, quotes sat at 9.5% after six years of growth.
2012: Texas Instruments quits mobile business
The American company Texas Instruments (TI) announced in September 2012 that it would reduce investment in the development and production of processors for applications installed smartphones in and tablet computers, reports. Reuters Processors for applications that TI launches under the OMAP brand are ARM-based devices designed to run on a mobile device, software including the operating system, GUI, and mobile applications.
In February 2011, TI announced the fifth generation OMAP processors - OMAP 5. So far, the new family contains only two chips: OMAP5430 and OMAP5432. Both processors contain 4 main cores made using 28 nm technology - two ARM Cortex-A15 MPCore cores and two ARM Cortex-M4 cores - which are supplemented by the multi-core graphics controller PowerVR SGX544-MPx.
Texas Instruments processors stand in many popular devices, including, for example, Amazon Kindle Fire HD tablets, Barnes & Noble Nook Tablet and BlackBerry PlayBook, Samsung Galaxy Nexus smartphone and many Motorola smartphones. Instead of continuing to develop the direction of mobile processors, the company decided to focus on embedded systems, including electronic systems for cars. The supplier is under serious competitive pressure from another American company - Qualcomm, the market leader in mobile chips in terms of supply volumes (sells processors under the Snapdragon brand).
Texas Instruments is reorienting from the release of processors for cellular phones, tablets and other wireless devices to embedded systems. The company's staff will be reduced by 1700 people. Reported in November 2012
The wireless chip division suffers losses for the third quarter in a row. In the last quarter, it lost $53 million, while the same period last year was completed with a profit of $78 million. However, sales in this market segment have almost halved, according to the company.
Notes
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