|
|
Analog
 Almost every electronics product requires analog technology, even in today's digital world. Analog chips capture the sights, sounds and textures of the real world and then condition them, amplify them and often convert them into a stream of ones and zeros so they can be further processed and refined by embedded processors, both digital signal processors (DSPs) and microcontrollers. Analog chips are also used to manage power distribution and consumption, increasingly important in today's mobile and energy-conscious world.
Sales from Analog accounted for 43 percent of our revenue in 2010. The market is large – about $42 billion in 2010 – and growing, but it is very fragmented. We hold the No. 1 position in this market with about 14 percent share, and we believe that we are well positioned to increase our share over time.
We have three categories of analog products: high-volume analog & logic, or HVAL, high-performance analog, and power management, representing about 40 percent, about 30 percent, and about 30 percent of our Analog business, respectively.
Our high-volume analog & logic products increasingly are application-specific standard products marketed for specific applications in communications, automotive, computing and many consumer electronics. Often these products will be customized to meet a specific customer application, but share many of the same features as the standard device. The life cycles of our high-volume analog products are generally shorter than our high-performance analog and power management products.
Our high-performance analog product line includes standard analog semiconductors that our customers use in many different end equipments ranging from consumer to industrial and from computing to communications. We currently have more than 15,000 products that we sell to more than 80,000 customers. High-performance analog products generally have long life cycles, often 10 to 20 years.
Our power management product line consists of both standard and application-specific analog semiconductors that help customers manage and distribute power in almost any type of electronic system, both portable devices and line-powered systems. Like high-performance analog, power management serves the communications, computing, consumer and industrial markets.
TI has established a unique position in analog. The breadth and depth of our product portfolio allows us to serve more of our customers' needs. When combined with our sales and applications force, which is several times the size of that of our nearest competitors, we are able to reach and engage with more customers than our competition. Finally, we've taken aggressive moves to have the manufacturing capacity in place to support our customers' growth. For example, we are in production at the industry's first 300-millimeter analog fab and since mid-2008, we've collectively added capacity and equipment for more than $5 billion of additional revenue per year when the fabs are fully operational.
Both our high-performance analog and power management business units have demonstrated their ability to outgrow the market for some time. And thanks to the leadership, strategic and operational shifts we've made in the high-volume analog and logic area, we now have all three engines of our Analog business showing good results. With this, we beleive TI Analog is poised to grow 2x the market over a three-to-five year timeframe.
|
|
|
