Texas Instruments leads the analog IC market
28 June, 2016
In 2009, TI made a strategic decision to lead the analog components market. Today, with an estimated 18% share of the analog market, TI is reaping the benefits of its 2009 decision
A report by leading research group IC Insights shows that Texas Instruments continues to lead the analog components market. In 2015, TI’s market share was estimated to be an impressive 18% or $47 billion. TI’s leading position becomes all the more clear when considering that TI sells more components than the three next listings in the leading analog IC suppliers put together. According to IC Insights, Texas Instruments is able to maintain its lead in the analog market thanks to its long term strategy rooted in its 2009 decision.
Texas Instruments has always been a leading supplier of analog components, but in 2009 it decided to lead the analog market. The strategic decision led to the doubling down of its efforts to dominate this market segment. The same year, TI was the first to produce analog devices on 300mm. TI used specialized 300mm equipment from defunct Qimonda, transferring it to its Texas fabs, thus gaining a decisive advantage over its competitors.
In 2010, Texas Instruments acquired two wafer fabs operated by Spanison in Japan, and a fully equipped 2—mm fab in China from Cension Semiconductor Manufacturing. The two facilities were converted and rapidly began the production of analog IC’s. In 2011, Texas Instruments made its biggest move in the field of analog IC’s – it purchased its long time rival National Semiconductor for $6.5 billion. TI further strengthened its position in the analog market by transitioning to 300mm manufacturing capacity across the board, thus reducing production costs by an estimated 40%.
The Analog IC market has many advantages – it is more stable and less competitive than the turbulent digital market. According to IC Insights, the analog market grew by 2% in 2015. Combined sales of general-purpose products (amplifiers/comparators, interface, power management, a signal conversion devices) increased by 2% to $19.1 billion and sales of application –specific analog devices also increased by 2% to $27.9 billion.
Among the analog IC products, the market for signal conversion devices showed the largest increase in the last year (2015), growing 14% to $2.9 billion.