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Texas Instruments Case Study: National Semiconductor is TI’s Latest Strategic Acquisition

In September 2011, Texas Instruments (TI) acquired National Semiconductor (NatSemi), a leading manufacturer of analog semiconductors. The deal significantly increases TI’s share of the buoyant and highly profitable analog market. It is also the latest in a series of acquisitions and divestments that over the course of more than a decade have helped transform TI from a diversified technology company into one highly focused on semiconductor manufacturing.

TI has been using acquisitions and divestments to focus on its core competence of semiconductor device manufacturing. In 2011, TI acquired NatSemi, a leading manufacturer of analog semiconductors. Analog semiconductor devices are vital in a wide range of end-markets, from industrial machinery to telecommunication systems. The global analog market is volatile, but is set to show strong growth over the next few years. Analog semiconductors offer good gross margins to their manufacturers. The analog market is fragmented and has high entry barriers, protecting incumbents from new entrants. These factors are leading companies like TI to focus more intensely on analog devices. In 2010, TI was the global market leader in analog, a position that its acquisition of NatSemi will confirm. Further benefits of the NatSemi acquisition include expansion of TI’s product portfolio, strengthening of its design competencies, and the ability to market NatSemi products via a larger sales force.

To know more, please read our case study: Texas Instruments Case Study: National Semiconductor is TI’s Latest Strategic Acquisition

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