After exiting the mobile phone chip, Texas Instruments does not seem to have a high perception for consumers . However, in the semiconductor industry, this is still a well-known company. In the field of analog IC, Texas Instruments is the undisputed market leader.

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Founded in 1930, it was originally a geological exploration company that used seismic signal processing technology to explore crude oil; it was renamed Texas Instruments in 1951; it entered the semiconductor market in 1954 and launched the first commercial silicon transistor. The history of Texas Instruments can not be said for days and nights. Today we will talk about how Texas Instruments has developed into the analog giant today. No electronic device needs an analog chip. In the field of analog IC, Texas Instruments is the undisputed market leader. Its revenue in the analog IC market is twice that of its next competitor, ADI, and it is the tenth Renesas. Ten times.

History of changes in the ranking of simulated vendors due to the acquisition split

To see the growth of Texas Instruments ’giants, let ’s start with the history of the entire analog IC. There is no lack of mergers and acquisitions in the semiconductor industry, which has had a major impact on the ranking of the analog IC industry. We traced back to the ranking of analog ICs 24 years ago in 1995. Compared with 2019, we found some interesting changes. Only three companies in the 1995 list remain intact in the 2019 ranking table: STMicroelectronics (ST), Texas Instruments (Texas Instruments) and ADI. Some other companies have “made a facelift” and some have disappeared in the top ten.

It can be seen that according to Gartner’s statistics, in 1995 Texas Instruments ranked fifth among analog suppliers. In 1996, Texas Instruments began an all-round transformation, focusing on the production of semiconductors for the signal processing market, and then launched a series of corporate mergers and acquisitions, capital divestitures, and step-by-step layout of the moat for analog ICs. As for how Texas Instruments has achieved today’s dominance, it will be described in detail later.

Philips, which ranked second in analog IC suppliers in 1995, divested its semiconductor business in 2006 and established NXP Semiconductors. Now NXP ranks sixth on the 2019 list.

Motorola, ranked fourth at the time, spun off the semiconductor businesses of ON Semiconductor and Freescale in 1999 and 2003, respectively. In 2015, ON Semiconductor acquired Fairchild for $ 2.4 billion in cash. In addition, NXP also acquired Freescale in December 2015.

Siemens, ranked ninth in 1995, spun off its semiconductor business to become Infineon in 1999. By 2019, Infineon has ranked third in the ranking.

NEC (ranked 10th in 1995) merged its semiconductor business NEC Electronics and Renesas Technology in 2010 to form Renesas Electronics. Renesas Technology was established in 2003 as a joint venture between Mitsubishi (ranked 13th in the 1995 analog ranking) and Hitachi (ranked 16th) in semiconductor business. Renesas is ranked tenth in 2019.

In the 1995 rankings, Toshiba and Sanyo are still engaged in simulation business, but it can be seen that they have fallen out of the top 10.

In the 2019 ranking, only three companies were not related to the 1995 ranking. Skyworks Solutions was founded in 2002 as a result of the merger of Alpha Industries and Conexant ’s wireless division. Maxim’s simulation in 1995The ranking did not even make it into the top 20, but rose to seventh place in 2019. Maxim’s growth was also largely driven by acquisitions, including the acquisition of Dallas Semiconductor and Volterra, as well as the product lines of Vitesse and Zilog. Microchip’s growth in recent years also.

Microchip was established in 1987 and was split from the Microelectronics Division of General Instruments. Microchip completed the acquisition of Microsemi in May 2018, which provided a good impetus for its full-year simulated sales in 2019.

Since then, each simulation manufacturer after separation and split has started to dominate the world, and has begun a new round of acquisitions, and continues to rank in the list with another identity and form. Major acquisitions include: NXP acquired Freescale in December 2015; ON Semiconductor acquired Fairchild in September 2016; Renesas acquired Intersil for US $ 3.2 billion; ADI acquired US $ 14.8 billion in the first quarter of 2017 Linear.

Interestingly, in the turbulent semiconductor industry mergers and acquisitions in recent years, Texas Instruments is the only one of the top ten manufacturers that has no “big moves” (such as acquisitions and mergers). However, the first place for simulation suppliers has been Texas Instruments since 2011.

The glory of Texas Instruments

According to market research company Databeans, Texas Instruments ’market share in 2011 exceeded the second-ranked ST, accounting for 15.4% of the overall analog market share. In 2011, Texas Instruments ’analog chip sales were approximately US $ 6.4 billion. In particular, the acquisition of National Semiconductor brought 5,000 employees to the company, as well as up to 45,000 analog integrated circuit products and customer design tools. Expand the company’s simulation business.

Since 2012, after Texas Instruments strategically withdrew from the baseband processor field of mobile phones, analog and embedded processing have become new key businesses. Texas Instruments firmly grasps the automotive and industrial electronics markets and relies on technological innovation to achieve increase. In 2012, Texas Instruments continued to rank first with its 16.7% market share, with revenue of US $ 6.6 billion.

Source: statista 2020

As can be seen from the above table, since 2013, Texas Instruments ’revenues in analog IC business over the years have been almost 2 to 3 times that of industry second-tier ADI and third-party Infineon, and revenues have continued to grow.

In 2013, the simulated sales of Texas Instruments were nearly US $ 7.2 billion. In 2014, Texas Instruments ’analog sales were $ 8.1 billion, accounting for 62% of the company ’s total revenue in 2014, increasing its analog market share to 18%. In 2015, Texas Instruments achieved sales of US $ 8.3 billion in 2015, and its market share was 18%. In 2016, sales were US $ 8.5 billion, almost the same as in previous years.

The simulated sales of Texas Instruments in 2017 were US $ 9.9 billion, with a market share of 18%. In 2017, simulated revenue accounted for 76% of its total IC sales of US $ 13 billion and 71% of its total semiconductor revenue of US $ 13.9 billion, according to IC Insights estimates. Texas Instruments was one of the first companies to manufacture analog semiconductors on 300mm wafers. Texas Instruments claims that manufacturing analog ICs on 300mm wafers reduces the cost advantage of each unpackaged chip by 40% compared to using 200mm wafers. In 2017, about half of Texas Instruments’ analog revenue came from equipment manufactured using 300mm wafers.

In 2018, Texas Instruments (Texas Instruments) simulated sales of 10.8 billion US dollars, with a market share of 18%. It is almost twice as high as the second-ranked ADI, and more than ten times that of the tenth-ranked Renesas Electronics. In 2018, the analog business revenue accounted for 78% of its IC sales of 13.9 billion US dollars and 72% of its total semiconductor revenue of 14.9 billion US dollars.

Texas Instruments has $ 10.2 billion in analog sales and 19% market share in 2019. Analog revenue accounts for 80% of its IC sales of $ 12.8 billion and 75% of its total semiconductor revenue of $ 13.7 billion. Nowadays, its leading position in the analog semiconductor market is solid, and no one can shake it.

Texas Instruments ’