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Silicon_Smith
Terry, I would not say that TI does not have higher performance products. They ...
Silicon_Smith
Agreed Goafrit. And thats quite unique considering the competition was very ...
TI lengthens lead in analog IC rankings
Dylan McGrath
3/24/2011 7:26 PM EDT
SAN FRANCISCO—Texas Instruments Inc. remained in firm control atop the analog IC market in 2010, with $6.2 billion in sales, good for nearly 15 percent of the total analog IC market revenue of $42.29, according to a report circulated Thursday (March 24) by market research firm Databeans Inc.
TI's analog sales increased 42 percent in 2010 compared to 2009, lengthening the company's lead over the No. 2 player in the market, STMicroelectronics NV, Databeans said. ST had analog sales for the year of $4.3 billion.
Most of TI’s analog demand came from industrial markets, which were especially strong, while consumer demand cooled, impacting markets such as computing and televisions, Databeans said. High=performance analog products, along with HVAL and power management, accounted for most of TI’s fourth quarter analog growth, Databeans said.
TI also raised its inventory by more than 25 percent in the fourth quarte, to $1.5 billion, up from $1.2 billion in the comparable 2009 quarter, Databeans said. The research firm said it expects TI to continue to build inventory.
Over the past year, TI's strategy has been to use its significant cash reserves to build new fabs, buy out other companies’ fabs, and increase its sales and engineering forces in China and India, according to Databeans. Last year, TI bought two fabs from Spansion (one empty) and started to ramp up its large RFAB 300-mm analog fab in Richardson, Texas. (The equipped 200-mm fab that TI bought from Spansion suffered some damage in the March 11 earthquake in Japan and is expected to be back in full production by mid April).
The completion of Phase II at RFAB will provide the capability for an additional $2 billion of analog revenue per year, Databeans said. The firm noted that TI claims it added enough manufacturing capacity last year to support $5 billion a year in new sales.
"These moves helped TI increase its market share in analog even further ahead of its competitors," Databeans said in a statement. "When many firms were still scrambling just to survive the recession, TI used the downturn to replenish its inventory, return product lead times to normal and ramp up production quickly with its three new fabs. As markets began to grow again, the company was well positioned to pounce on returning consumer demand."
Databeans said TI learned a "difficult lesson" a couple years ago when OEM requests for lead times for analog ICs skyrocketed. In some cases TI’s lead times grew to six or more months for certain products, in comparison to normal levels of around 6 to 8 weeks, Databeans said. "In response, TI went on a buying binge, buying up fabs during the recession, many at a discount, and building up the buffer inventory it needed to reduce its lead times," Databeans said.
Databeans (Reno, Nev.) said TI should continue to succeed with its strategy in analog in the near term, but that in the long term a dramatic rise in inventory could be dangerous and put pressure on average selling prices industry wide.
TI's analog sales increased 42 percent in 2010 compared to 2009, lengthening the company's lead over the No. 2 player in the market, STMicroelectronics NV, Databeans said. ST had analog sales for the year of $4.3 billion.
Most of TI’s analog demand came from industrial markets, which were especially strong, while consumer demand cooled, impacting markets such as computing and televisions, Databeans said. High=performance analog products, along with HVAL and power management, accounted for most of TI’s fourth quarter analog growth, Databeans said.
TI also raised its inventory by more than 25 percent in the fourth quarte, to $1.5 billion, up from $1.2 billion in the comparable 2009 quarter, Databeans said. The research firm said it expects TI to continue to build inventory.
Over the past year, TI's strategy has been to use its significant cash reserves to build new fabs, buy out other companies’ fabs, and increase its sales and engineering forces in China and India, according to Databeans. Last year, TI bought two fabs from Spansion (one empty) and started to ramp up its large RFAB 300-mm analog fab in Richardson, Texas. (The equipped 200-mm fab that TI bought from Spansion suffered some damage in the March 11 earthquake in Japan and is expected to be back in full production by mid April).
The completion of Phase II at RFAB will provide the capability for an additional $2 billion of analog revenue per year, Databeans said. The firm noted that TI claims it added enough manufacturing capacity last year to support $5 billion a year in new sales.
"These moves helped TI increase its market share in analog even further ahead of its competitors," Databeans said in a statement. "When many firms were still scrambling just to survive the recession, TI used the downturn to replenish its inventory, return product lead times to normal and ramp up production quickly with its three new fabs. As markets began to grow again, the company was well positioned to pounce on returning consumer demand."
Databeans said TI learned a "difficult lesson" a couple years ago when OEM requests for lead times for analog ICs skyrocketed. In some cases TI’s lead times grew to six or more months for certain products, in comparison to normal levels of around 6 to 8 weeks, Databeans said. "In response, TI went on a buying binge, buying up fabs during the recession, many at a discount, and building up the buffer inventory it needed to reduce its lead times," Databeans said.
Databeans (Reno, Nev.) said TI should continue to succeed with its strategy in analog in the near term, but that in the long term a dramatic rise in inventory could be dangerous and put pressure on average selling prices industry wide.
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yalanand
3/25/2011 5:19 AM EDT
TI did the right thing by investing in building new Fabs during recession. It has helped TI to reap the benefits of market uptrend to the fullest. 15% of the market share is pretty impressive.
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agk
3/25/2011 11:36 AM EDT
In the year 1977 i used the Texas Instruments TTL data book a mild yellow base coloured thick top wrapper.For many years i loved the book and used their IC's very much.Those days only access was through data books and sheets very hard to get them in India. Now just compare these facilities on line refering desigining testing makes me feel that TI has climbed up together with the whole world.Their participation so intelligent and calculated so the results are given above. All to see and follow them in their ventures to achieve the top.
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goafrit
3/25/2011 3:03 PM EDT
There seems to be no movement in the top 4 for these years. The top ones are just there
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Silicon_Smith
3/26/2011 3:30 PM EDT
Agreed Goafrit. And thats quite unique considering the competition was very close a few years back. The fragmented Analog market is finally seeing a clear winner in TI which, it appears, will only increase the gap between itself and the rest of the pack. Disappoiting to see ADI lagging behind, though they did have a strong YoY.
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GREAT-Terry
3/25/2011 9:34 PM EDT
TI is really strong leader in the seminconductor market. It is doing quite good in analog market, both with good enough product and relatively good price. I may not say they are having the highest performance product but they just price the product aggressively (or some people called it priced right) so higher performance makers (like ADI, MAXIM and LTC) just can't compete with them. TI just won't give up any market segment! Anyway, I would expect it stays at top for years in the future as there won't be another company that can support the market in such scale.
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Silicon_Smith
3/26/2011 3:34 PM EDT
Terry, I would not say that TI does not have higher performance products. They have some of the industry leading Data Converters and Op-amps et al. In any case, you can not convince a designer to Design In an ADC which does not meet the noise constraints, no matter how "right" the price is. It is all about having better products according to the market need. True that ADI, Maxim and LTC have products that cater to some very specific applications, but those applications dont have a huge market, is my guess.
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