Texas Instruments
| File:Texas Instruments logo.svg Logo of Texas Instruments | |
| Company type | Public |
|---|---|
| Industry | Semiconductors |
| Predecessor | Geophysical Service Incorporated |
| Founded | January 1, 1951 in Dallas, Texas, United States |
| Founder | Cecil H. Green, J. Erik Jonsson, Eugene McDermott, Patrick E. Haggerty |
| Headquarters | Dallas , United States |
Area served | Worldwide |
| Products | Analog chips, embedded processors, digital light processing technology, calculators, microcontrollers, multi-core processors |
Number of employees | 29000 (2023) |
| Website | www |
Texas Instruments Incorporated (TI) is a global semiconductor corporation based in Dallas, Texas. It ranks within the top ten semiconductor manufacturers worldwide by revenue. TI primarily concentrates on the creation of analog chips and embedded processors, which account for more than 80% of its income. Additionally, its range of products encompasses digital light processing (DLP) technology and educational technology devices such as calculators, microcontrollers, and multi-core processors.
Originally established in 1930 under the name Geophysical Service Incorporated, the company restructured in 1951 to emphasize semiconductors and defense electronics. In 1954, TI produced the first commercially available silicon transistor and launched the inaugural transistor radio. The invention of the integrated circuit by founder Jack Kilby at TI's Central Research Labs occurred in 1958. Subsequent milestones include the introduction of the handheld calculator in 1967 and the debut of the first single-chip microcontroller in 1970, which combined computing components onto a single silicon chip.
In 1987, TI developed the digital light processing (DLP) device, forming the basis for its DLP technology and applications in cinema projection. The release of the TI-81 graphing calculator in 1990 reinforced its dominance in educational technology. By selling its defense division to Raytheon Company in 1997, TI was able to concentrate more fully on digital technologies. The acquisition of National Semiconductor in 2011 broadened TI’s portfolio to roughly 45,000 analog products and design resources.
Serving a customer base exceeding 100,000 worldwide, Texas Instruments is regarded as a significant barometer for trends within the semiconductor sector.
History
Texas Instruments was established in 1951 by Cecil H. Green, J. Erik Jonsson, Eugene McDermott, and Patrick E. Haggerty. Prior to this, McDermott, Green, and Jonsson had acquired Geophysical Service Incorporated (GSI) in 1941, where they had previously worked. Patrick Haggerty joined the company in 1945 as the general manager of the Laboratory and Manufacturing division, concentrating on electronic devices. The expansion of this division, largely fueled by defense contracts, prompted a corporate restructuring in 1951, resulting in the company being renamed Texas Instruments after a brief period as General Instruments Inc. Between 1956 and 1961, Fred Agnich held the position of TI president. GSI operated as a subsidiary of Texas Instruments until most of its assets were sold to Halliburton in 1988.
Geophysical Service Incorporated
Founded in 1930 by J. Clarence Karcher and Eugene McDermott, Geophysical Service specialized in seismic exploration services for the oil industry. In 1939, it underwent reorganization to become Coronado Corp, with GSI functioning as a subsidiary. In 1941, McDermott and three associates purchased GSI outright. During World War II, GSI expanded its operations into electronic equipment production for the U.S. military. The establishment of Texas Instruments in 1951 aimed to produce seismographs for oil exploration purposes, with GSI becoming a wholly owned subsidiary.
A significant accomplishment for TI-GSI occurred in 1965 when it participated in a Top Secret government initiative to monitor Soviet underground nuclear detonations under Project Vela, aiding in the enforcement of the Partial Nuclear Test Ban Treaty.
Texas Instruments maintained its production of seismic instruments while GSI continued providing related services until its sale to Halliburton in 1988, after which GSI ceased to exist as an independent company.
Semiconductors
In early 1952, Texas Instruments secured a patent license from Western Electric for $25,000 to manufacture germanium transistors and began production within that year. Patrick Haggerty brought on board Gordon Teal, a specialist in semiconductor crystal growth from Bell Telephone Laboratories, to lead TI's research laboratory. By the end of 1952, TI had expanded to employ around 2,000 people with sales reaching $17 million.
Among the new recruits was Willis Adcock, a physical chemist who spearheaded research into producing silicon single-crystal transistors. Adcock later became TI’s inaugural Principal Fellow.
First silicon transistor and integrated circuits
In January 1954, Morris Tanenbaum at Bell Labs developed the first functional silicon transistor. Independently, Gordon Teal at Texas Instruments created the first commercially viable silicon transistor by April 1954 and showcased it at a prominent industry conference that May.
During that same year, TI designed and produced the first transistor radio, known as the Regency TR-1, which utilized germanium transistors and helped stimulate market interest.
In 1958, TI engineer Jack Kilby invented the integrated circuit and demonstrated the initial working prototype in September. Approximately six months later, Robert Noyce from Fairchild Semiconductor independently developed a silicon-based integrated circuit with built-in interconnections. Kilby’s invention earned him the Nobel Prize in Physics in 2000 and induction into the National Inventors Hall of Fame. In recognition of his contributions, TI named its new research facility "Kilby Labs" in 2008.
While Noyce’s chip employed silicon technology and Kilby’s used germanium, both breakthroughs established Texas Instruments’ leadership in semiconductors and integrated circuits, forming the foundation for its business expansion and global market presence.
Standard TTL
The 7400 series of transistor-transistor logic integrated circuits, introduced by Texas Instruments during the 1960s, played a pivotal role in popularizing ICs for computer logic applications. The military-spec variant was designated as the 5400 series.
Microprocessor
Texas Instruments pioneered the handheld calculator prototype named "Cal Tech" in 1967 and advanced to develop the first single-chip microcomputer in 1971. On September 4, 1973, the company was granted the inaugural patent for a single-chip microprocessor, invented by Gary Boone. Despite legal challenges, this patent was ultimately upheld in TI's favor in 1996. Both TI and Intel are widely recognized for their nearly simultaneous creation of the microprocessor.
First speech synthesis chip
In 1978, TI unveiled the first single-chip linear predictive coding speech synthesizer. This breakthrough followed a 1976 feasibility study related to bubble memory technology and marked TI’s deeper commitment to speech processing advancements. The resulting TMC0280 silicon chip became the initial device capable of electronically simulating human speech. This innovation was incorporated into commercial products such as Speak & Spell, which debuted at the 1978 Consumer Electronics Show. Texas Instruments exited the speech synthesis market in 2001 by transferring its operations to Sensory Inc.
Consumer electronics and computers
In May 1954, Texas Instruments engineered the world’s first transistor radio prototype and collaborated with Industrial Development Engineering Associates to commercialize this fully solid-state radio by October of that year.
Under president Pat Haggerty in the 1960s, TI’s team—including founder Jack Kilby—developed the Cal-Tech, a portable, battery-operated calculator that became a cornerstone of the company’s revenue stream. The early 1970s saw the release of handheld calculators such as the SR-10 and SR-50 (1973–74), which featured red LED numeric displays and innovative optical components.
Throughout the 1970s and 1980s, TI broadened its consumer electronics lineup with digital clocks and LED watches manufactured in Dallas and Lubbock, Texas. While initial LED watch models enjoyed market success, battery constraints prompted a transition toward LCD technology; however, these LCD watches faced challenges related to design appeal and pricing. Educational tools like the Speak & Spell series also formed part of TI’s product offerings during this period.
TI entered the home computer arena in 1979 with the TI-99/4, competing with contemporaries such as Apple II and Commodore models. By 1982, TI led U.S. home computer shipments but withdrew from this segment in 1983 due to intense price competition. Subsequent releases included the TI Professional Portable Computer (1983), an MS-DOS-based system incompatible with IBM PCs. Notably, many Compaq founders emerged from TI’s executive team. The company continued manufacturing PC-compatible laptops until divesting this division to Acer in 1998.
This section underscores Texas Instruments’ strategic emphasis on innovation and diversification within consumer electronics and computing, which substantially contributed to its market presence and financial success across these decades.
Defense electronics
Texas Instruments ventured into defense electronics in 1942 by producing submarine detection systems that capitalized on seismic exploration techniques originally developed for oil prospecting. This business segment operated under various titles over time, including the Defense Systems & Electronics Group (DSEG).
During the early 1980s, TI adopted a comprehensive quality initiative incorporating Juran training, statistical process control methods, Taguchi techniques, and Design for Six Sigma. By the late 1980s, TI partnered with firms such as Eastman Kodak and Allied Signal to integrate Motorola’s Six Sigma quality methodology—first introduced in 1982—into their processes. In recognition of manufacturing excellence, TI’s DSEG division received the esteemed Malcolm Baldrige National Quality Award in 1992.
Infrared and Radar Technologies
In the late 1950s, TI created the AAA-4 infrared search and track system specifically for the F-4B Phantom, although this technology was eventually discontinued in later variants due to its limited performance.
Beginning in 1956, TI made significant advancements in infrared technology, earning multiple contracts for line scanner devices and pioneering the first forward looking infrared (FLIR) system by 1963, which entered production three years later in 1966. The company introduced a cost-saving innovation in 1972 with the common module FLIR design, which standardized components to reduce expenses.
TI’s radar innovations included side-looking radar, the pioneering terrain following radar, and various surveillance radar systems utilized by both military and FAA agencies. The company also demonstrated the initial solid-state radar under the Molecular Electronics for Radar Applications initiative. In 1976, TI developed a prototype microwave landing system, followed by breakthroughs such as the first inverse synthetic aperture radar in 1984 and the debut single-chip gallium arsenide radar module. A joint military microwave integrated circuit project with Raytheon launched in 1991 further expanded TI’s defense electronics capabilities.
Missile Guidance and Laser-Guided Munitions
TI secured the contract for the guidance and control system of the AGM-45 Shrike antiradiation missile in 1961, subsequently becoming the prime contractor for the AGM-88 HARM missile program initiated in 1974, with production starting in 1981. In 1964, TI developed the inaugural laser guidance system for precision munitions, leading to the Paveway line of laser-guided bombs beginning with the BOLT-117.
The company won the seeker contract for the Harpoon missile in 1969 and collaborated with Martin Marietta in 1986 to create the FGM-148 Javelin fire-and-forget antitank missile. TI was awarded the AGM-154 Joint Standoff Weapon contract in 1991. In 1988, TI resolved allegations concerning overbilling on guided missile contracts with a $5.2 million settlement paid to the U.S. Navy.
Military Computing Systems
Utilizing its proficiency in military-grade silicon transistors and integrated circuits (ICs), TI secured contracts to develop the first IC-based computer for the U.S. Air Force in 1961 and supplied IC components for the Minuteman Missile program a year later in 1962. The company also designed data systems for NASA’s Mariner missions in 1968 and won contracts related to F-22 radar and computer systems development in 1991.
Divestment to Raytheon
During a period of consolidation within the defense sector, TI sold its defense business to Raytheon in 1997 for $2.95 billion. The Department of Justice mandated that Raytheon divest TI’s Monolithic Microwave Integrated Circuit (MMIC) division—representing less than $40 million of TI’s $1.8 billion defense revenue from 1996—which was subsequently sold to TriQuint Semiconductor. Despite this divestiture, Raytheon retained licensing rights to TI’s MMIC technology.
Following this acquisition, Raytheon also acquired Hughes Aircraft from General Motors, merging TI’s mercury cadmium telluride detector and infrared systems operations with Hughes’ infrared detector business. Regulatory conditions required Raytheon to maintain both TI’s IR systems and Hughes’ detector units, combining erstwhile competitors into a consolidated entity.
Afterward, TI Defense Systems operated under the name Raytheon TI Systems (RTIS) until full integration into Raytheon eliminated this separate identity.
Artificial intelligence
During the 1980s, Texas Instruments engaged in the field of artificial intelligence, creating the Explorer series of Lisp machines featuring a specialized 32-bit Lisp microprocessor utilized in the Explorer II and the TI MicroExplorer designed for the Apple Macintosh. TI's AI software portfolio encompassed gate assignment solutions for Northwest and United Airlines, which encoded expert operational knowledge. For personal computers, TI introduced "Personal Consultant," a rule-based expert system application, later enhanced with "Personal Consultant Plus" using the Lisp-inspired language Scheme, along with NLMenu, a natural language-driven menu interface.
Sensors and controls
Texas Instruments was a prominent original equipment manufacturer producing sensor, control, protection, and RFID components catering to sectors such as automotive, appliances, and aerospace. The Sensors & Controls division operated from its headquarters in Attleboro, Massachusetts. By the mid-1980s, programmable logic controllers (PLCs) were separated into the Industrial Systems Division, which was subsequently sold to Siemens in the early 1990s.
In 2006, private equity firm Bain Capital LLC purchased the Sensors & Controls division for $3 billion. The RFID business remained part of TI under the Semiconductor division’s Application Specific Products unit. The divested entity was renamed Sensata Technologies and maintained its base in Attleboro.
Software
In 1997, TI divested its software division, including flagship products like CA Gen, to Sterling Software, now integrated into Computer Associates. However, TI retained smaller software assets such as those supporting its calculators including TI Interactive!. Furthermore, TI continues to develop specialized software for its digital signal processors (DSPs) and provides host-based tools designed for DSP application development.
Finances
For the fiscal year 2017, Texas Instruments reported net earnings of $3.682 billion on revenues totaling $14.961 billion, marking an 11.9% growth compared to the previous year. By October 2018, TI’s stock price exceeded $82 per share with a market capitalization surpassing $88 billion. In 2018, Texas Instruments held the 192nd position on the Fortune 500 ranking based on revenue.
| Year | Revenue in mil. US$ |
Net income in mil. US$ |
Total assets in mil. US$ |
Price per share in US$ |
Employees |
|---|---|---|---|---|---|
| 2005 | 12,335 | 2,324 | 15,063 | 21.97 | |
| 2006 | 14,255 | 4,341 | 13,930 | 23.98 | |
| 2007 | 13,835 | 2,657 | 12,667 | 26.01 | 30,175 |
| 2008 | 12,501 | 1,920 | 11,923 | 19.85 | 29,537 |
| 2009 | 10,427 | 1,456 | 12,119 | 16.66 | 26,584 |
| 2010 | 13,966 | 3,184 | 13,401 | 21.60 | 28,412 |
| 2011 | 13,735 | 2,201 | 20,497 | 26.37 | 34,759 |
| 2012 | 12,825 | 1,728 | 20,021 | 25.57 | 34,151 |
| 2013 | 12,205 | 2,125 | 18,938 | 32.90 | 32,209 |
| 2014 | 13,045 | 2,777 | 17,372 | 42.61 | 31,003 |
| 2015 | 13,000 | 2,986 | 16,230 | 49.79 | 29,977 |
| 2016 | 13,370 | 3,595 | 16,431 | 59.83 | 29,865 |
| 2017 | 14,961 | 3,682 | 17,642 | 82.03 | 29,714 |
| 2018 | 15,784 | 5,580 | 17,137 | 90.46 | 29,888 |
| 2019 | 14,383 | 5,017 | 18,018 | 123.32 | 29,768 |
| 2020 | 14,461 | 5,595 | 19,351 | 162.70 | 30,000 |
| 2021 | 18,344 | 7,769 | 24,676 | 189.41 | 31,000 |
| 2022 | 20,028 | 8,749 | 27,207 | 165.22 | 33,000 |
| 2023 | 17,519 | 6,510 | 32,348 | 34,000 |
Divisions
By January 2021, Texas Instruments derived 41% of its yearly revenue from the industrial sector, while the automotive segment contributed 21%. The company’s primary business units encompass analog products, embedded processors, digital light processing (DLP), and educational technology.
Additional business areas
TI's offerings also extend to DLP technology, calculators, and customized application-specific integrated circuits (ASICs).
DLP Technology
Texas Instruments provides DLP solutions for televisions, projectors, and digital cinema applications. This technology serves a wide range of industries including industrial, enterprise, automotive, and consumer markets, strengthening TI’s position in sophisticated light management systems.
- Custom application-specific integrated circuits (ASICs)
TI designs intricate custom ASICs tailored to meet client requirements, enhancing its portfolio through specialized semiconductor products.
Educational Technology
With a history dating back to the 1970s, TI has been a significant player in educational technology by manufacturing calculators and educational toys. The introduction of calculators such as the TI-30 and TI-81 cemented the company's influence in educational tools. Graphing calculators like the TI-83 Plus and TI-84 Plus continue to be prominent offerings.
Although calculators account for less than 3% of TI's total revenue—part of the $1.43 billion recorded in the "Other" segment in 2018—they yield strong profit margins. Production costs for models like the TI-84 Plus are estimated between $15 and $20, with profit margins surpassing 50%.
TI’s collaborations with educational bodies such as the National Council of Teachers of Mathematics (NCTM) and the College Board have positioned its calculators as standard tools in classrooms and standardized testing environments. Initiatives like Teachers Teaching for Technology (T3) promote product adoption by training educators, reinforcing TI’s leadership in educational technology.
TI Calculator Community
Beginning in the 1990s with the TI-81, TI's graphing calculators featured an integrated TI-BASIC interpreter that allowed basic programming. The TI-83 later introduced native assembly language support. This capability led to the emergence of websites hosting programs, tutorials, and calculator-related resources, giving rise to communities such as ticalc.org.
The community reached its height in the early 2000s with numerous websites and programming groups forming. Activity intensified with nearly 100 user-submitted programs daily and competition among platforms boosting engagement.
A significant aspect has been TI’s control over its graphing calculator hardware, which is divided into two categories: older devices using Zilog Z80 processors and newer models based on Motorola 68000 series chips. Both categories are secured through hardware validation and software signing to block unauthorized operating systems. In 2009, users uncovered TI’s signing keys, leading to TI issuing invalid DMCA takedown notices and igniting the Texas Instruments signing key controversy.
Competitors
Texas Instruments commands the largest share in the analog semiconductor market, generating revenues exceeding $10 billion out of a $57 billion industry total in 2020.
Acquisitions
- 1996: Tartan, Inc. was acquired.
- 1997: Purchased Amati Communications for $395 million.
- 1998: Obtained GO DSP and standard logic product lines from Harris Semiconductor, including families such as CD4000, HC4xxx, HCT, FCT, and ACT.
- 1999: Acquired Libit Signal Processing Ltd. (Israel) for approximately $365 million; Butterfly VLSI, Ltd. for around $50 million; Telogy Networks for $457 million; along with Unitrode Corporation.
- 2000: Completed acquisition of Burr-Brown Corporation valued at $7.6 billion.
- 2001: Integrated Graychip for its digital up/down converter technology.
- 2003: Acquired Radia Inc., a developer of ASIC WiFi front-end solutions based in San Jose.
- 2006: Chipcon was purchased for about $200 million.
- 2009: Added CICLON and Luminary Micro to the portfolio through acquisitions.
- 2011: Completed the acquisition of National Semiconductor for $6.5 billion.
- 2021: Bought a 300mm semiconductor fabrication facility located in Lehi, Utah from Micron for $900 million.
- 2022: Acquired icDirectory France.
Through these targeted acquisitions, Texas Instruments has broadened its product and service offerings, enhanced its international presence, and reinforced its position within the semiconductor market.
National Semiconductor acquisition
On April 4, 2011, Texas Instruments declared its intent to acquire National Semiconductor in an all-cash transaction valued at $6.5 billion, paying shareholders $25 per share—representing an 80% premium over the prior closing price of $14.07. This acquisition strategically elevated TI to become the leading global manufacturer of analog technology components by significantly expanding its product range and market footprint. The transaction supported TI’s strategic focus on bolstering its analog semiconductor segment and improving worldwide operations. Following regulatory clearance, the merger was completed on September 23, 2011, marking a pivotal moment in TI’s expansion and competitive positioning within the semiconductor sector.
President
- Cecil Howard Green, 1950–1951
- John Erik Jonsson, 1951–1958
- Patrick Eugene Haggerty, 1958–1967
- Mark Shepherd Jr., 1967–1970
- Robert David Rogers, 1970–1975
- Mark Shepherd Jr., 1975–1976
- James Fred Bucy Jr., 1976–1985
- Jerry Ray Junkins, 1986–1996
- Thomas James Engibous, 1996–2004
- Richard Kevin Templeton, 2004–2023
- Haviv Ilan, 2023–present
Chairman of the board
- Eugene McDermott, 1953–1955
- Cecil Howard Green, 1955–1958
- John Erik Jonsson, 1958–1969
- Patrick Eugene Haggerty, 1969–1970
- Ralph Burton Rogers, 1970–1975
- Patrick Eugene Haggerty, 1975–1976
- Mark Shepherd Jr., 1976–1988
- Jerry Ray Junkins, 1988–1996
- James R. Adams, 1996–1998
- Thomas James Engibous, 1998–2008
- Richard Kevin Templeton, 2008–present