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TI buying National Semiconductor


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Did anyone get this email shocking email today?

 

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Dear valued customer,

 

I am excited to let you know that TI has signed a definitive agreement to purchase National Semiconductor, uniting two industry leaders that have a common commitment to solving your analog needs. I want to reinforce TI's commitment to you, our customer, as we merge our two companies.

 

This acquisition will allow us to address your analog needs with a product portfolio of unmatched breadth and depth. National's 12,000 products plus TI's 30,000 means more performance, power and packaging options when selecting the right ICs for your application. And we'll provide a common set of best-in-class online tools to make the selection and design process easier.

 

Our combined sales and applications team of 2,500 will be larger than any in the industry so we can provide more customers with greater face-to-face support than ever before.

 

Our manufacturing operations will offer more capacity to support your growth. TI's fabs and National's available capacity can enable higher production levels.

 

While both companies will operate independently pending the close, our goal thereafter is to make the integration process as seamless as possible. No requalification of products will be necessary since National's manufacturing sites will continue to be utilized. Part numbers from both companies will remain the same. There will be no obsolescence of products.

 

I'm excited about what the integration of our two companies will mean for you: an unmatched portfolio to meet your analog needs, an extensive sales and applications network to ease the design process, and manufacturing capacity to support your growth.

 

You can learn more about the acquisition at http://www.ti.com/acquire, including answers to frequently asked questions and video messages from TI leaders regarding the acquisition.

 

Thank you for choosing TI. I look forward to a great future together.

 

Best regards,

 

Rich Templeton

Chairman, President and CEO

Texas Instruments

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Just got it. Hopefully, it won't result in analog chip monopoly in the market.

 

Apparently the acquisition will amount to TI controlling 17% of the analog market. Unless there's quite a few chips that are exclusive to TI and National, it should be cool for now.

 

It does look like National is pretty profitable and would be much more so if TI were to take over administrative operations:

 

                                 TI                     National  
SG&A % of revenue             10.9                    19.3 

http://www.ti.com/corp/docs/investor/compinfo/ti-national-ir-presentation.pdf

 

Despite what TI says, I doubt they will want to continue producing the National chips for too long. I would imagine they must be cannibalizing themselves on products for which both companies have an offering.

 

Edit: Replaced "NXP" with "National." Thanks Zeke, I think I read misread NSC as NXP in that doc and just went with it.

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  • 1 month later...
This is the biggest deal in semiconductor industries. two giants are now under one roof. :D

Well, sometimes not. The fewer the companies making the same competing product results in a price increase of parts as there is less competition.

 

Yes But you know some time ago they take-Over Luminary Micro and now NS. :)

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