Texas Instruments Incorporated (TI) designs and manufactures semiconductors, selling them to electronics designers and manufacturers globally. Founded in 1930 and headquartered in Dallas, Texas, TI operates in over 30 countries. The company's two primary segments are Analog and Embedded Processing, with remaining activities reported under "Other." TI generated \$17.52 billion in revenue in 2023.

TI focuses on creating affordable electronics through semiconductor innovation. They were early adopters in the transition from vacuum tubes to transistors and integrated circuits. The company's core mission is to make electronics more reliable, affordable, and energy-efficient. TI primarily serves the industrial and automotive markets.

TI's business model is built around four competitive advantages: manufacturing and technology expertise, a diverse product portfolio in analog and embedded processing, extensive market reach, and product, market, and customer longevity. These advantages enable TI to generate and return significant cash flow.

The company faces competition from various large and small companies, including emerging companies, especially in Asia. TI also considers customer prior investments in software development for embedded processing products a competitive factor.

• Employees: Approximately 34,000 (as of December 31, 2023)
• Geographic Footprint: Operations in over 30 countries
• Headquarters: Dallas, Texas, USA
• Founded: 1930
• Number of locations/facilities: Multiple facilities globally (specific number not disclosed)
• Revenue: \$17.52 Billion (FY2023)
• Market Capitalization: \$163.23 billion (as of June 30, 2023)
• Key Subsidiaries or Brands: DLP

• CEO & President: Haviv Ilan
• CFO: Rafael Lizardi
• Board Chairman: Richard K. Templeton
• Other Key Executives: Ahmad S. Bahai, Mark S. Gary, Hagop H. Kozanian, Shanon J. Leonard, Mark T. Roberts, Amichai Ron, Cynthia Hoff Trochu (Secretary & General Counsel), Christine A. Witzsche, Mohammad Yunus

Executive term durations are from their election date until a successor is chosen. Most executives have been with the company for over five years.

• Annual Revenue: \$17.52 billion (FY2023)
• Net Income: \$6.51 billion (FY2023)
• Market Cap: \$163.23 billion (as of June 30, 2023)
• Total Assets: \$32.35 billion (FY2023)
• Number of Employees: Approximately 34,000 (as of December 31, 2023)
• Key Financial Highlights (FY2023): Revenue decreased 12.5% YoY, Net Income decreased, Free Cash Flow was \$1.35 billion (7.7% of revenue).

TI offers a broad portfolio of approximately 80,000 semiconductor products used in various electronic equipment. These products perform functions such as signal conversion and amplification, device interfacing, power management, data processing, noise cancellation, and signal resolution.

• Analog: These semiconductors interface real-world signals with digital systems. Product lines include Power and Signal Chain. Power products manage power in electronic systems, while Signal Chain products sense, condition, and measure real-world signals. Analog products generated approximately 74% of revenue in FY2023.
• Embedded Processing: These products act as the "brains" of many electronic devices, handling specific tasks and optimized for performance, power, and cost. Product categories include microcontrollers, digital signal processors (DSPs), and applications processors. Embedded Processing generated approximately 19% of revenue in FY2023.
• Other: This segment includes DLP products (primarily used for high-definition image projection), calculators, and application-specific integrated circuits (ASICs).

TI has two reportable segments: Analog and Embedded Processing.

• Analog: Generated \$13.04 billion in revenue in FY2023 (74% of total revenue).
• Embedded Processing: Generated \$3.37 billion in revenue in FY2023 (19% of total revenue).
• Other: Includes products and services not meeting the quantitative thresholds for separate reporting, such as DLP, calculators, and ASICs. Generated \$1.11 billion in revenue in FY2023.

TI's overarching strategy is to maximize long-term free cash flow per share growth. This is achieved through three core elements:

• Focus on Analog and Embedded Processing: Leveraging four key competitive advantages: manufacturing and technology foundation, broad product portfolio, market channel reach, and product/market longevity.
• Disciplined Capital Allocation: Strategic investments in R&D, new capabilities (like TI.com), manufacturing capacity, acquisitions, and returning capital to shareholders through dividends and share repurchases.
• Efficiency: Continuous improvement and maximizing output for every dollar spent across all company areas.

TI prioritizes investments in 300mm wafer fabrication facilities to enhance its manufacturing cost advantage and meet future demand. The company aims to strengthen its direct customer relationships through online channels and personalized services.

TI operates in the fragmented analog and embedded processing semiconductor market. The company faces competition from numerous global players, both large and small, including emerging companies, particularly in Asia.

Key markets for TI's products include industrial (40% of 2023 revenue), automotive (34%), and personal electronics (15%).

• Geopolitical Tensions: TI's global operations expose it to risks from international trade policies, tariffs, and geopolitical instability, which can disrupt supply chains and impact financial results.
• Intense Competition: The semiconductor market is highly competitive, requiring TI to respond rapidly to technological advancements and pricing pressures from both established and emerging rivals.
• Demand Fluctuations: The cyclical nature of the semiconductor market and changes in customer demand can significantly impact TI's revenue and profitability.
• Cybersecurity Threats: TI faces risks from cybersecurity incidents that could compromise its operations, data, and reputation.
• Supply Chain Disruptions: TI relies on third-party suppliers for materials and services, making it vulnerable to supply chain disruptions caused by various factors.