Texas Instrs — Business Overview
What does Texas Instruments do?
Texas Instruments (TI) designs and manufactures semiconductors — the chips that power modern electronics — and sells them to a vast, global customer base of over 100,000 customers. Founded in 1930 and headquartered in Dallas, Texas, TI generated $17.68 billion in revenue in 2025. Its portfolio spans more than 80,000 products used in everything from factory robots to electric vehicles to smartphones.
TI operates through two main reportable segments, plus a catch-all "Other" category:
| Segment | What it does | 2025 Revenue | Share of Revenue |
|---|---|---|---|
| Analog | Converts real-world signals (sound, temperature, light) into digital data; manages power in electronic devices | $14.01B | ~79% |
| Embedded Processing | Digital "brains" (microcontrollers, processors, wireless chips) that handle specific computing tasks in devices | $2.70B | ~15% |
| Other | DLP projection chips, calculators, custom ASICs (application-specific integrated circuits, chips built for one purpose) | $0.98B | ~6% |
How does Texas Instruments make money?
TI sells chips directly to electronics designers and manufacturers, with more than 80% of revenue now coming through direct channels, including its own website. This shift away from distributors is deliberate — direct relationships give TI better insight into customer design projects and allow it to capture more of the value chain. Only a small portion of sales flows through distributors, including one global distributor and a few regional ones.
Revenue is spread across five end markets, with industrial and automotive each accounting for 33% of revenue in 2025, making them by far the most important. Personal electronics (21%), data centers (9%), and communications equipment (3%) round out the rest. This diversification across markets and more than 100,000 customers — with about half of revenue coming from outside TI's top 50 customers — reduces dependence on any single buyer or sector.
What market does Texas Instruments operate in?
TI competes in the analog and embedded processing segments of the global semiconductor industry, which are known for their diversity, longevity, and relatively stable demand compared to memory or cutting-edge logic chips. Analog chips, in particular, tend to have long product life cycles and are used across a wide range of applications, meaning a chip designed today may still generate revenue a decade from now.
Secular tailwinds support the industry: the continued electrification of vehicles, automation of factories, expansion of data centers, and general digitization of the physical world all require more analog and embedded chips. TI specifically calls out industrial, automotive, and data center markets as areas where semiconductor content is expected to grow well into the future. Conversely, personal electronics (21% of revenue) is a more cyclical and mature market.
Who are Texas Instruments' main competitors?
Despite some consolidation, the analog and embedded processing markets remain highly fragmented, meaning TI competes against dozens of companies ranging from large diversified chipmakers to small niche players. Competitors include emerging companies in Asia. TI does not name specific rivals in this filing, but well-known peers in these segments include Analog Devices, STMicroelectronics, NXP Semiconductors, Infineon Technologies, Renesas, and Microchip Technology.
TI claims four core competitive advantages it believes are difficult to replicate:
- Manufacturing and technology: TI owns and operates its own fabs (fabrication facilities), including newer 300mm wafer fabs in Texas and Utah. A chip made on a 300mm wafer costs about 40% less than one made on a 200mm wafer, giving TI a structural cost edge.
- Broad product portfolio: Over 80,000 products across a huge range of applications.
- Market channel reach: Direct relationships with over 100,000 customers, including strong e-commerce capabilities through TI.com.
- Product and customer longevity: Long product life cycles and deep customer relationships, especially in embedded processing where customers write software on TI chips and are reluctant to switch.
Where does Texas Instruments operate?
TI has design, manufacturing, or sales operations in more than 30 countries, making it a truly global company, though it is headquartered and has a large manufacturing base in the United States. Its newest and most advanced 300mm wafer fabs are located in Richardson and Sherman, Texas, and Lehi, Utah — all of which were qualifying and ramping production in 2025.
TI also owns and operates semiconductor manufacturing facilities in Asia, Japan, and Europe, in addition to North America. These include both wafer fabrication plants and assembly/test facilities. The company sources materials from a diverse global supplier network and uses a multisite production strategy to reduce supply-chain risk.
TI explicitly frames its in-house U.S. manufacturing as a geopolitical advantage, offering customers "geopolitically dependable capacity" — a pointed reference to growing concerns about reliance on Asian chip manufacturing. This positions TI's domestic production footprint as a selling point, particularly for industrial and automotive customers who prioritize supply security.