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yalanand
@kinnar but I guess this merger will also create lot of redundant resources as ...
Jack.L
Really not a lot of high performance analog players when it comes down to it, TI ...
TI closes National acquisition
9/23/2011 7:06 PM EDT
SAN FRANCISCO—As expected, Texas Instruments Inc. Friday (Sept. 23) closed the $6.5 billion acquisition of former rival National Semiconductor Corp.
TI (Dallas) said earlier this week that it expected to close the deal Friday—slightly faster than the company initially expected when it announced the deal in April—after receiving all required regulatory approval.
"National is now a strategic part of TI’s analog growth engine," said Rich Templeton, TI’s chairman, president and CEO, in a statement. "Together, we’re focused on accelerating semiconductor innovation to improve performance and power efficiency for our customers’ electronic systems."
More than 5,000 National employees will immediately become part of TI. The two companies will begin the work to integrate National as a unit of TI’s analog semiconductor business, which will have a combined portfolio of nearly 45,000 analog products and a sales force that is 10 times larger than National’s previous footprint., TI said.
TI said it would include National’s contribution to financial performance in the company’s third-quarter earnings announcement on Oct. 24. With the closing of the deal, TI's analog semiconductor business unit now represents more than 50 percent of the company’s revenue, TI said.
TI will continue to operate National’s manufacturing sites, located in Maine, Scotland and Malaysia, as well as business headquarters in Santa Clara, Calif., and sales/design support around the world, TI said.
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goafrit
9/23/2011 9:51 PM EDT
They will disinvest from this in five years. it is bad business and will depress earnings
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Sanjib.Acharya
9/23/2011 10:36 PM EDT
Just curious to know the objective that the TI management had in their mind for this acquisition. Is it because TI wanted to increase their market share and portfolio in the analog domain (I noticed, analog have been in TI's focus in the seminars since last couple of years)? Does TI plan to become analog giant?
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Silicon_Smith
9/25/2011 11:19 AM EDT
I would say, is it not already an analog giant? With National on board, TI is approaching nearly double the market share as the next in line. Fragmented, as the analog market is, it still says a lot about the analog powerhouse TI has become.
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t.alex
9/24/2011 12:04 AM EDT
Maybe to reduce competitors.
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GCn
9/24/2011 10:55 AM EDT
Maybe to fill the capacity utilization of their 12 inch foundry....
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KB3001
9/24/2011 1:27 PM EDT
TI wants to be a one-stop-shop for Analog and integrated electronic devices. Economies of scope and scale could give it a major comparative advantage.
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t.alex
9/26/2011 9:07 AM EDT
Yeh quite true. Combined quantity will give a major advantage of pricing.
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hm
9/24/2011 9:08 PM EDT
Alongwith financial contribution, TI should also consider innovation from NSC. Will it suffer or will it propsper? I am more interested in innovation from NSC.
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kinnar
9/25/2011 3:03 AM EDT
Acquisition can be said a good merger, as now designer will get a better interfacing of Code Composer Studio and LabView.
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TingLu
9/25/2011 10:14 AM EDT
Why labview? I am afraid you are confused between National Semiconductor and National Instrument. These two are different companies.
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Silicon_Smith
9/25/2011 11:16 AM EDT
Agreed TingLu. And anyway, Code Composer Studio is an IDE for the embedded devices, unlike LabView.
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yalanand
10/3/2011 7:53 AM EDT
@kinnar but I guess this merger will also create lot of redundant resources as well. Rumours were strong that some people were given pink slip in those companies because they had excess man power after the merger.
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Dave.Dykstra
9/26/2011 12:17 AM EDT
Well, I like products from both companies. I'm sorry to see National no longer an independent company, but quite possibly the effective increase in sales force will get more penetration for those products.
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agk
9/26/2011 4:15 AM EDT
As they are together now i look forward for a new breed or new family of chips. The combination of specific talents will bring out certain specific IC's which will hit the markets soon.
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sharps_eng
9/26/2011 3:50 PM EDT
What were National's big earners? Obviously they have a big list of switchers, they bought Comlinear which got them some fast, premium analog for the comms markets, but what else?
I guess they were also living off some second-source licenses for cute analog by Widlar et al.?
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Jack.L
9/27/2011 9:14 AM EDT
I think this is a much eliminating a competitor as anything. I don't see anything terribly strategic in the National portfolio, just a good range of power management and good volume general analog. Pretty big on LVDS, LED drivers, etc. Oh, and some of the best web-tools which I have to admit has influenced lower volume designs on a few occasions ... yes lazy, but my time is not free and generally time to market far outweighs a few pennies.
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Jack.L
9/27/2011 9:17 AM EDT
Really not a lot of high performance analog players when it comes down to it, TI is huge(r) now, ADI, LT, Maxim (though at times I wonder), and Intersil(who) are the ones that always come to mind. Sure guys like ST do a huge number in commodity analog, but where the big dollars/margin is is in high performance analog.
Economies of scale on the manufacturing front cannot be discounted.
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