Though rumors had surfaced that Amazon—which uses OMAP in its Kindle Fire and Kindle Fire HD tablets—was in discussions to acquire the division, Strauss said the motivation for any vendor to buy OMAP just wasn't there.
"What could TI offer that others don't have? OMAP is just one of several solutions for applications processsors. There are other alternatives," Strauss said. Though he added that OMAP had a bigger slice of the market than competitors in smartphones and tablets.
TI did not provide a specific breakdown of the job cuts. The company said it expects the cuts to save the company about $450 million per year, beginning at the end of 2013. The company said it expects to take charges as the result of the cuts of about $325 million in the fourth quarter.
"These job reductions are something we do with a heavy heart because they impact people we care deeply about," said Greg Delagi, senior vice president of embedded processing at TI, in a statement. Delagi said TI would provide the affected employees with a range of assistance related to compensation, benefits and job search."
Delagi also reiterated that TI has a great opportunity to reshape its OMAP processor and wireless connectivity product lines to concentrate on embedded markets. "Momentum is already building with new embedded applications and a broad set of customers, and we are accelerating our efforts in these areas," he said.
It looks like both TI and and ST have made the same flawed move. The Samsung/Apple duopoly is coming to and end as Sony/Motorola/HTC make better products (IMO). These companies need a strong competitor to Qualcomm. Following the breakup of ST-Ericsson a TI CEO with any balls would pick up where ST left off and get into bed with Ericsson, undoing it's silly exit from mobile basebands a few years ago.
mobile is rapidly growing area, and mobile processor is at the heart. I'm not sure what else TI has to focus. It's meaningless to look back, but
1. what if TI keep working on modem technology and fight for LTE and try to integrate with OMAP?
2. what if TI keep having digital manufacturing in-house?
TI could have been only company making integrated high performance MP/modem in IDM environment now..
Engineer CEO could have seen this trend, unfortunately sales CEO couldn't...
TI has been on the back foot for quite some time now and may be they didn't feel so comfortable in the digital platform market which is increasingly driven by cost. So good they are moving away to grow elsewhere which is not a bad move overall.
It's difficult for companies to survive in multiple domains when the economy is in a spiral and they may endanger their core business if they are too stubborn to see the reality.
Semis is global, bullsh*t statements send them back do no help. TI make most of their stuff in Taiwan and other Asian countries, to remain competative. tjey where one of the first licencees of Arm.
Secret of success is innovation and margin, AP provide neither. The move is sound, the number is surprising but its fitting the workforce to the on going business
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a salesman CEO is doomed,
just like otellini co. with the ultrabook joke.
their brain is full of $ signs instead of tech.
this is just part of healthy cycle of mother nature. make ppl humble and re energized...
TI leads when TI teams up with industry leader. TI won in Wirelles when we (i was TI in the era of TJE and GDEL) got design-in at Nokia at the time when Nokia was potentialy a rising star. When industry leadership moved away from Modem/Nokia towards aps (to finaly end up at Aple) TI was not there anymore to take risk, to cointinue winning new design, to maintain a pioneer winning fighting spirit, to team up with the new rising leaders.
Then TI reorganized, cut costs, gave up design-in, innovation, risks, investments, Modem design and last but not least IC fabrication.... in my view TI then became a mee-too simply capitalizing on "reuse/implementation" of ARM with DSP OMAP short term non sustainable advance.... One key point is fabrication of advanced technology that moved away from traditionnal SC manufacturing including TI toward global foundries. In the Wireles times TI was winning because TI was leading technology process ahead of competitors (full technolopgy entitlement was the slogan). This competitive advantage is definitively gone, wether TI continues OMAP or not wether TI had continued Modem or not.
So yes i agree TI is missing his former courageous leaders and their challenging startegies , but,let us be fair, TI is also missing technology leadership which is gone for ever.
@sprite0022, :). I am neither PR nor sth, I am a VLSI engineer. I totally agree with you that its a failure on part of TI nobody can deny it but I believe TI has done the right thing by exiting the market where margins are hard to comeby.