TEXAS INSTRUMENTS INC (TXN)

Texas Instruments designs and manufactures semiconductors that it sells to electronics designers and manufacturers worldwide. The company began operations in 1930, is incorporated in Delaware, and is headquartered in Dallas, Texas, with design, manufacturing or sales operations in more than 30 countries. It generated $17.68 billion of revenue in 2025. Its strategy centers on growing free cash flow per share over the long term through a business focused on analog and embedded processing products, disciplined capital allocation, and efficiency. It cites four competitive advantages: manufacturing and technology, a broad product portfolio, the reach of its market channels, and the diversity and longevity of its products, markets and customer positions.

The company has two reportable segments plus Other, and its portfolio includes more than 80,000 products. Analog (about 79% of revenue, $14.01 billion) makes chips that condition, amplify and convert real-world signals such as sound, temperature, pressure or light into digital data, and that manage power. Its main product lines are Power (battery management, DC/DC and AC/DC regulators, power switches, linear regulators, voltage references and lighting products) and Signal Chain (amplifiers, data converters, interface products, motor drives, clocks, logic and sensing products). Embedded Processing (about 15% of revenue, $2.70 billion) offers the digital "brains" of electronic equipment, including microcontrollers, processors, wireless connectivity and radar products. Customers often develop their own software on these products, which tends to lengthen customer relationships. Other ($979 million) includes DLP products, calculators and certain custom ASICs, along with acquisition, restructuring and other corporate-level items.

TI sells to over 100,000 customers, and about half of its revenue comes from customers outside its largest 50. By market in 2025, industrial represented about 33% of revenue, automotive 33%, personal electronics 21%, data center 9% and communications equipment 3%, with calculators about 1%. More than 80% of revenue was direct, including through TI.com, and the rest is sold to a lesser extent through distributors, including a single worldwide distributor and a few regional ones.

TI does most of its manufacturing in-house and owns wafer fabrication and assembly/test facilities in North America, Asia, Japan and Europe. It is ramping new 300mm wafer fabs in Richardson and Sherman, Texas, and Lehi, Utah, and says an unpackaged chip on a 300mm wafer costs about 40% less than one on a 200mm wafer. It supplements internal capacity with outside foundries and subcontractors, and sources materials from diverse global suppliers. The analog and embedded processing markets are highly fragmented, and TI faces competition from dozens of large and small companies, including emerging Asian competitors. It holds many patents but is not materially dependent on any one. At December 31, 2025, it had about 33,000 employees.