Texas Instruments Incorporated

Overview

• Public semiconductor company incorporated in Delaware and headquartered in Dallas, Texas.
• Global operations in more than 30 countries with design, manufacturing, and sales activities worldwide.
• Two reportable segments: Analog and Embedded Processing; other activities reported in Other.
• 2025 revenue: $17.68 billion.

Business model and segments

• Strategy focuses on three elements:
  • Four competitive advantages: manufacturing and technology, a broad product portfolio (analog and embedded processing), wide market reach, and diverse, long-lived products and customers.
  • Disciplined capital allocation across R&D, manufacturing capacity, acquisitions, and cash returns (dividends and share repurchases).
  • Efficiency and continuous improvement to maximize long-term free cash flow per share.
• Segments (2025 revenue):
  • Analog: $14.01 billion (~79% of total revenue).
  • Embedded Processing: $2.70 billion (~15%).
  • Other: $0.979 billion (remainder).

Products and major lines

• Analog:
  • Power: battery management, DC/DC regulators, power switches, LDOs, voltage references, and related products.
  • Signal chain: amplifiers, data converters, interface products, motor drives, clocks, logic, and sensing.
• Embedded Processing:
  • Microcontrollers, processors, wireless connectivity, and radar products for embedded applications; customers often provide software development, extending relationships across product generations.
• Other (~5% of revenue):
  • DLP products (projectors), calculators, and certain ASICs.
• Portfolio breadth: more than 80,000 products used across diverse electronics.

Markets and market share

• 2025 revenue by market (approximate, in declining order):
  • Industrial market: 33% (industrial automation, aerospace & defense, energy infrastructure, building automation, medical, test & measurement, etc.).
  • Automotive infotainment & cluster: 33% (ADAS, body electronics & lighting, hybrid/electric powertrain, chassis/safety).
  • Personal electronics: 21% (mobile phones, PCs/notebooks, tablets, wearables, home theater).
  • Data center: 9% (data center compute, rack power & thermal management).
  • Wireless infrastructure: 3% (wired/wireless networking, broadband access).
  • Calculators: 1%.
• Market dynamics: competition is highly fragmented; TI emphasizes product breadth, sales channels, manufacturing capabilities, and customer software commitments as competitive factors.
• Sales channels: more than 80% of revenue is generated directly (including TI.com); the remainder is through distributors who may carry competing lines.

Customers and sales model

• Sells to over 100,000 customers; about half of revenue comes from customers outside the top 50.
• Primarily direct sales via TI.com and direct sales teams; regional distributors support order fulfillment.

Employees and human capital

• Approximately 33,000 employees worldwide (as of December 31, 2025).
• About 90% of employees work in R&D, sales, or manufacturing.
• Turnover: 10.1% in 2025.
• Company culture emphasizes promote-from-within and offers training and development programs to broaden employee experience.

Manufacturing and capacity

• Owns and operates semiconductor fabrication and assembly/test facilities, maintaining largely in-house manufacturing to support supply chain reliability and competitive position.
• Global footprint includes facilities in North America, Asia, Japan, and Europe.
• Emphasis on 300mm wafer capacity to reduce unit costs (about 40% lower cost for a 300mm unpackaged chip versus 200mm).
• Currently ramping production at new 300mm fabs in Richardson, TX; Sherman, TX; and Lehi, UT; able to support internal and external transfers.
• Majority of wafer fabrication and assembly/testing performed in-house; foundries and subcontractors used to supplement capacity as needed.
• Supplier network is diverse and global, with emphasis on supply continuity, risk management, and health, safety, and environmental compliance.

Facilities and geography

• U.S. facilities: ~17.8 million square feet (as of 12/31/2025); ~0.6 million square feet leased.
• International facilities: ~12.8 million square feet (as of 12/31/2025); ~2.4 million square feet leased.
• Leases for occupied facilities generally expire within five years.
• Current properties are considered suitable and adequate for company operations.

Intellectual property and research

• Owns a broad patent portfolio with ongoing applications and maintains licenses as needed.
• Maintains an IP position to protect products and ensure freedom to operate.

Other notes

• Approximately 60% of revenue comes from customers headquartered outside the United States.
• About 50% of revenue is tied to shipments into China, with 20% of revenue from end customers headquartered in China (2025 data).

Executive and governance context

• Board and audit committee provide oversight for cybersecurity and enterprise risk management, with CIS frameworks and standard controls in place.
• Leadership includes a CEO, CFO, and senior vice presidents across key functions, with executive continuity from appointments between 2021 and 2024.