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peralta_mike
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re: TI-NS deal: What analysts are saying
peralta_mike   4/6/2011 2:35:05 PM
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I used to work at Burr-Brown when TI bought them out in 1999/2000. Most of the very excellent products that Burr-Brown made can no longer be bought since TI got into a cost cutting frenzy and destroyed all of Burr-Brown's fabrication people and equipment to save money. Burr-Brown used to make the best of the analog circuits in the world. But since TI took them over, this is no longer true. I don't think Analog Devices Inc., or Linear Tech, or Maxim have anything to worry about. I still use some TI op-amps and other precision analog devices but I am finding out that the best devices are now coming from Maxim, Linear Tech, and ADI. TI has lost the edge in high performance Analog as compared to it's competitors. TI still has some good devices but as the years go on I am seeing more of the best products coming from it's competitors. TI has a tendency to go low-cost and high-volume, which is OK for many products. But this mentality will keep it from producing the cream-of-the-crop as compared to Maxim, Linear Tech, and ADI.

GREAT-Terry
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CEO
re: TI-NS deal: What analysts are saying
GREAT-Terry   4/6/2011 5:31:39 AM
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I think ADI and LTC should think about what to do to compete with this TI-NS giant. With such a large share in analog market (no matter it is high performance or commodity), TI will have good leverage on product portfolio and price advantage. LTC and ADI as far as I know won't like to acquire companies, of course I don't believe ADI will buy LTC or vice versa, but think about buying niche technology companies or process may help to differentiate themselves from TI!

aefrgqergqwergqerg
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re: TI-NS deal: What analysts are saying
aefrgqergqwergqerg   4/5/2011 4:25:29 PM
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TI's analog cost structure was always great, that's why they could get sales goals by giving parts away. Now they got that Richardson 12-inch fab going for peanuts since they got the machinery for $77 million out of that memory company bankruptcy. So this is a typically brilliant TI deal. It is a way better deal than Burr Brown. In this deal, they blunt a competitor, they get some good IC designers and application people as well as FAEs. They buy revenue and margins. They can pick and chose the salespeople. A real plum in my biased opinion is that TI gets WEBENCH, which is at least a decade ahead of other online tools. So TI has to move all the parts onto their website and integrate WEBENCH and add all the TI parts to that-- a major effort. Everybody else will get thrown under the bus-- upper management, the fabs, the product engineers, the process people, and most of the operations people. TI was tough to beat last week, they will be even tougher in a few months after this deal goes down. Interesting to see what will happen to the National Semi Arlington Texas 6-inch fab they just shut down last month. I suspect TI will just hang onto the site until they need the space for something. I am sure they will scrap the 6-inch line, unless the Sherman TX standard logic folks can use it. The Sherman folks will get the 8-inch stuff out of South Portland unless TI sells the whole mess to Fairchild. Top-level strategy is a wonderful thing to watch unfold. It sure beats National's "annual 5-year plan" mentality.

yalanand
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re: TI-NS deal: What analysts are saying
yalanand   4/5/2011 3:54:33 PM
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As expected most of the analysts are giving thumbs up to the deal. "Who will likely acquire whom next...?" that is the next big question. I guess this deal will force Intel and Samsung to plan for new alliances.

Johnos999
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re: TI-NS deal: What analysts are saying
Johnos999   4/5/2011 3:18:19 PM
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OK, sranje, I give up ... who is likely to acquire who, then? My guess: Analog Devices and Linear Tech. perhaps? But these two outfits have lots of product overlap, so it wouldn't be nice for either, as they try to figure out what products are going to get canned. And it wouldn't be great news for the industry either - less competion.

sranje
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Manager
re: TI-NS deal: What analysts are saying
sranje   4/5/2011 2:45:03 PM
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TI makes components but it sells "block diagrams", that is, superior and complete solutions S-factor (S for solutions) revenue and profit benefit – a system’s strategic component pulls in an entire solution revenue and generates a superior profit -- TI has to provide all solution’s elements (directly or indirectly via partners) -- Strategically critical solution technologies are acquired or partnered -- Power management (standard power products - a 2-year old new HPA group) was $1.77B in FY2010 - HPA group (standard signal chain products) was $1.79B National is the second ranked power management IC vendor (after TI); nearly one-half of its total $$1.4B revenues comes from power management. National is also well positioned to become the industry's top IC vendor in terms of performance and valuation -- IF it can reduce its large GSA expenses - something, like changing a DNA, is very difficult to do. National was founded in 1959; its revenues declined 50% from $2.7B in 1997 to $1.4B in 2010. For decades the company was wandering in a digital desert pursuing "PC on chip" and other distractions; only in 2005 did National reintroduce a word "analog" in its description. BTW - it is also fairly obvious who will likely acquire whom next... http://www.petrovgroup.com/pdfs/National%20article%20-%20published%20July%205-10.pdf



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