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Texas Instruments 

“Market Cap $51.42 B As of May 2014

At a Glance
  • Industry: Semiconductors
  • Founded: 1930
  • Country: United States
  • CEO: Richard Templeton
  • Website: www.ti.com
  • Employees: 32,209
  • Sales: $12.2 B
  • Headquarters: Dallas, Texas
Forbes Lists

#421 Global 2000

  • #796 in Sales
  • #311 in Profit
  • #1090 in Assets
  • #190 in Market value
Profile

Texas Instruments Incorporated is a global analog and digital semiconductor IC design and manufacturing company. In addition, to analog technologies, digital signal processing and microcontroller semiconductors, it designs and manufactures semiconductor solutions for analog and digital embedded and application processing. The company operates through four business segments: Analog segment, Embedded Processing segment, Wireless segment and Other segment. The Analog segment semiconductors change real-world signals such as sound, temperature, pressure and images by conditioning them, amplifying them and often converting them to a stream of digital data that can be processed by other semiconductors, such as digital signal processors. Its product portfolio includes high-volume analog and logic, high-performance analog and power management. The High-volume analog and logic products include specific applications and custom products. The High-performance analog products include standard analog semiconductors, such as amplifiers, data converters and interface semiconductors. The Power management products include both standard and custom semiconductors that help customers manage power in any type of electronic system. It designs and manufactures power management semiconductors for both portable devices, such as handheld consumer electronics, laptop computers and cordless power tools and line-powered systems, such as computers, digital TVs, wireless base stations and high-voltage industrial equipment. The Embedded Processing segment products include digital signal processing and microcontrollers. Digital Signal Processing performs mathematical computations almost instantaneously to process and improve digital data. Microcontrollers are designed to control a set of specific tasks for electronic equipment. It manufactures and sells standard and catalog Embedded Processing products used in many different applications and custom Embedded Processing products used in specific applications, such as communications infrastructure equipment and automotive. The Wireless segment designs, manufactures and sells semiconductors that enable connectivity through means other than the cellular network, such as Bluetooth devices and Wi-Fi networks. The Other segment includes smaller semiconductor product lines and sales handheld graphing and scientific calculators. The company was founded in 1930 by Cecil H. Green, Patrick Eugene Haggerty, John Erik Jonsson and Eugene McDermott and is headquartered in Dallas, TX.

“Texas Instruments History

Texas Instruments was founded by Cecil H. Green, J. Erik Jonsson, Eugene McDermott, and Patrick E. Haggerty in 1951. McDermott was one of the original founders of Geophysical Service in 1930. McDermott, Green, and Jonsson were GSI employees who purchased the company in 1941. In November, 1945, Patrick Haggerty was hired as general manager of the Laboratory and Manufacturing (L&M) division. By 1951, the L&M division, with its defense contracts, was growing faster than GSI’s Geophysical division. The company was reorganized and initially renamed General Instruments Inc. Because there already existed a firm named General Instrument, the company was renamed Texas Instruments that same year. From 1956 to 1961, Fred Agnich of Dallas, later a Republican member of the Texas House of Representatives, was the Texas Instruments president. Geophysical Service, Inc., became a subsidiary of Texas Instruments; early in 1988 most of GSI was sold to the Halliburton Company.

Texas Instruments exists to create, make and market useful products and services to satisfy the needs of its customers throughout the world.

— Patrick Haggerty, Texas Instruments Statement of Purpose

Geophysical Service Incorporated

In 1930, J. Clarence Karcher and Eugene McDermott founded Geophysical Service, an early provider of seismic exploration services to the petroleum industry. In 1939 the company reorganized as Coronado Corp., an oil company with Geophysical Service Inc (GSI), now as a subsidiary. On December 6, 1941, McDermott along with three other GSI employees, J. Erik Jonsson, Cecil H. Green, and H.B. Peacock purchased GSI. During World War II, GSI expanded their services to include electronics for the U.S. Army, Signal Corps, and the U.S. Navy. In 1951 the company changed its name to Texas Instruments, GSI becoming a wholly owned subsidiary of the new company.

An early success story for TI-GSI came in 1965 when GSI was able (under a Top Secret government contract) to monitor the Soviet Union’s underground nuclear weapons testing under the ocean in Vela Uniform, a subset of Project Vela, to verify compliance of the Partial Nuclear Test Ban Treaty.

Texas Instruments also continued to manufacture equipment for use in the seismic industry, and GSI continued to provide seismic services. After selling (and repurchasing) GSI, TI finally sold the company to Halliburton in 1988, at which point GSI ceased to exist as a separate entity.

Defense electronics

Texas Instruments entered the defense electronics market in 1942 with submarine detection equipment, based on the seismic exploration technology previously developed for the oil industry. The division responsible for these products was known at different points in time as the Laboratory & Manufacturing Division, the Apparatus Division, the Equipment Group and the Defense Systems & Electronics Group (DSEG).

During the early 80s Texas Instruments instituted a quality program which included Juran training, as well as promoting Statistical process control, Taguchi methods and Design for Six Sigma. In the late 80s, the company, along with Eastman Kodak and Allied Signal, began involvement with Motorola institutionalizing Motorola’s Six Sigma methodology. Motorola, who originally developed the Six Sigma methodology, began this work in 1982. In 1992 the DSEG division of Texas Instruments’ quality improvement efforts were rewarded by winning the Malcolm Baldrige National Quality Award for manufacturing.

The following are some of the major programs of the former TI defense group.

Infrared and Radar systems

TI developed the AAA-4 infra-red search and track (IRST) in the late 50’s and early 60’s for the F-4B Phantom for passive scanning of jet engine emissions but possessed limited capabilities and was eliminated on F-4D’s and later models.

In 1956 TI began research on infrared technology that led to several line scanner contracts and with the addition of a second scan mirror the invention of the first forward looking infrared (FLIR) in 1963 with production beginning in 1966. In 1972 TI invented the Common Module FLIR concept, greatly reducing cost and allowing reuse of common components.

TI went on to produce side-looking radar systems, the first terrain following radar and surveillance radar systems for both the military and FAA. TI demonstrated the first solid-state radar called Molecular Electronics for Radar Applications (MERA). In 1976 TI developed a microwave landing system prototype. In 1984 TI developed the first inverse synthetic aperture radar (ISAR). The first single-chip gallium arsenide radar module was developed. In 1991 the Military Microwave Integrated Circuit (MIMIC) program was initiated – a joint effort with Raytheon.

Missiles and Laser-guided bombs

In 1961 TI won the guidance and control system contract for the defense suppression AGM-45 Shrike anti-radiation missile. This led later to the prime on the High-speed Anti-Radiation Missile (AGM-88 HARM) development contract in 1974 and production in 1981.

In 1964 TI began development of the first laser guidance system for precision-guided munitions (PGM) leading to the Paveway series of laser-guided bombs (LGB)s. The first LGB was the BOLT-117.

In 1969 TI won the Harpoon (missile) Seeker contract. In 1986 TI won the Army FGM-148 Javelin fire-and-forget man portable anti-tank guided missile in a joint venture with Martin Marietta. In 1991 TI was awarded the contract for the AGM-154 Joint Standoff Weapon (JSOW).

Military computers

Because of TI’s research and development of military temperature range (silicon) transistors and integrated circuits (ICs), TI won contracts for the first IC-based computer for the U.S. Air Force in 1961 and for ICs for the Minuteman Missile the following year. In 1968 TI developed the data systems for Mariner Program. In 1991 TI won the F-22 Radar and Computer development contract.

Divestiture to Raytheon

As the defense industry consolidated, TI sold its defense business to Raytheon in 1997 for $2.95 billion. The Department of Justice required that Raytheon divest the TI Monolithic Microwave Integrated Circuit (MMIC) operations after closing the transaction. The TI MMIC business accounted for less than $40 million in 1996 revenues, or roughly two percent of the $1.8 billion in total TI defense revenues was sold to TriQuint Semiconductor, Inc. Raytheon retained its own existing MMIC capabilities and has the right to license TI’s MMIC technology for use in future product applications from TriQuint.

Shortly after Raytheon acquired TI DSEG, Raytheon then acquired Hughes Aircraft from General Motors Raytheon then owned TI’s mercury cadmium telluride detector business and Infrared (IR) systems group. In California, it also had Hughes infrared detector and an IR systems business. When again the US government forced Raytheon to divest itself of a duplicate capability, the company kept the TI IR systems business and the Hughes detector business. As a result of these acquisitions these former arch rivals of TI systems and Hughes detectors work together.

Immediately after acquisition, DSEG was known as Raytheon TI Systems (RTIS). It is now fully integrated into Raytheon and this designation no longer exists.

Semiconductors

Early in 1952 Texas Instruments purchased a patent license to produce (germanium) transistors from Western Electric Co., the manufacturing arm of AT&T, for $25,000, beginning production by the end of the year.

On January 1, 1953, Haggerty brought Gordon Teal to the company as a research director. Gordon brought with him his expertise in growing semiconductor crystals. Teal’s first assignment was to organize what became TI’s Central Research Laboratories (CRL), which Teal based on his prior experience at Bell Labs.

Among his new hires was Willis Adcock who joined TI early in 1953. Adcock, who like Teal was a physical chemist, began leading a small research group focused on the task of fabricating “grown-junction silicon single-crystal small-signal transistors. Adcock later became the first TI Principal Fellow.

First silicon transistor and integrated circuits

On January 26, 1954, M Tanenbaum et al. at Bell Labs created the first workable silicon transistor.This work was reported in the spring of 1954 at the IRE off-the-record conference on Solid State Devices and later published in the Journal of Applied Physics, 26, 686–691(1955). Working independently in April 1954, Gordon Teal at TI created the first commercial silicon transistor and tested it on April 14, 1954. On May 10, 1954 at the Institute of Radio Engineers (IRE) National Conference on Airborne Electronics, in Dayton, Ohio. Teal also presented a paper, “Some Recent Developments in Silicon and Germanium Materials and Devices,” at this conference.

In 1954, Texas Instruments designed and manufactured the first transistor radio. The Regency TR-1 used germanium transistors, as silicon transistors were much more expensive at the time. This was an effort by Haggerty to increase market demand for transistors.

Jack Kilby, an employee at TI’s Central Research Labs, invented the integrated circuit in 1958. Kilby recorded his initial ideas concerning the integrated circuit in July 1958 and successfully demonstrated the world’s first working integrated circuit on September 12, 1958. Six months later Robert Noyce of Fairchild Semiconductor (who went on to co-found Intel) independently developed the integrated circuit with integrated interconnect, and is also considered an inventor of the integrated circuit. Kilby won the 2000 Nobel Prize in Physics for his part of the invention of the integrated circuit. Noyce’s chip, made at Fairchild, was made of silicon, while Kilby’s chip was made of germanium. In 2008 TI named its new development laboratory “Kilby Labs” after Jack Kilby.

In 2011, Intel, Samsung, LG, ST-Ericsson, Huawei’s HiSilicon Technologies subsidiary, Via Telecom and three other undisclosed chipmakers licensed the C2C link specification developed by Arteris Inc. and Texas Instruments.

Standard TTL

The 7400 series of transistor-transistor logic (TTL) chips, developed by Texas Instruments in the 1960s, popularized the use of integrated circuits in computer logic. The military grade version of this was the 5400 series.

Microprocessor

Texas Instruments invented the hand-held calculator (a prototype called “Cal Tech”) in 1967 and the single-chip microcomputerin 1971, was assigned the first patent on a single-chip microprocessor (invented by Gary Boone) on September 4, 1973.This was disputed by Gilbert Hyatt, formerly of the Micro Computer Company, in August 1990 when he was awarded a patent superseding TI’s. This was over-turned on June 19, 1996 in favor of TI. (Note: Intel is usually given credit with Texas Instruments for the almost-simultaneous invention of the microprocessor.)

First speech synthesis chip

In 1978, Texas Instruments introduced the first single-chip LPC speech synthesizer.In 1976 TI began a feasibility study memory intensive applications for bubble memory then being developed. They soon focused on speech applications. This resulted in the development the TMC0280 one-chip Linear predictive coding (LPC) speech synthesizer which was the first time a single silicon chip had electronically replicated the human voice. This was used in several TI commercial products beginning with Speak & Spell which was introduced at the Summer Consumer Electronics Show in June 1978. In 2001 TI left the speech synthesis business, selling it to Sensory Inc. of Santa Clara, California.

Consumer electronics and computers

In May 1954, Texas Instruments designed and built a prototype of the world’s first transistor radio, and, through a partnership with Industrial Development Engineering Associates (I.D.E.A.) of Indianapolis, Indiana, the 100% solid-state radio was sold to the public beginning in November of that year.

TI continued to be active in the consumer electronics market through the 1970s and 1980s. Early on, this also included two digital clock models; one for desk, and the other a bedside alarm. From this sprang what became the Time Products Division, which made LED watches. Though these LED watches enjoyed early commercial success thanks to excellent quality, it was short lived due to poor battery life. LEDs were replaced with LCD watches for a short time, but these could not compete because of styling issues, excessive makes and models, and price points. The watches were manufactured in Dallas and then Lubbock, Texas. In 1978, Texas Instruments introduced the first single chip speech synthesizer, and incorporated it in a product called Speak & Spell, which was later immortalized in the movie E.T. the Extra-Terrestrial. Several spin-offs, such as the Speak & Readand Speak & Math, were introduced soon thereafter.

In 1979, TI entered the home computer market with the TI99/4, a competitor to such entries as the Apple II, Tandy/RadioShack TRS-80 and the laterAtari 400/800 series, Commodore VIC-20 and Commodore 64. It discontinued the TI-99/4A (1981), the sequel to the 99/4, in late 1983 amidst an intense price war waged primarily against Commodore. At the 1983 Winter CES, TI showed models 99/2 and the Compact Computer 40 (CC-40), the latter aimed at professional users. The TI Professional (1983) ultimately joined the ranks of the many unsuccessful DOS and x86-based—but non-compatible—competitors to the IBM PC. (The founders of Compaq, an early leader in PC compatibles, all came from TI.) The company for years successfully made and sold PC-compatible laptops before withdrawing from the market and selling its product line to Acer in 1997.

Artificial intelligence

Texas Instruments was active in the 1980s in the area of artificial intelligence. In addition to ongoing developments in speech and signal processing and recognition, it developed and sold the Explorer computer family of LISP machines. For the Explorer a special 32bit LISP microprocessor was developed, which was used in the Explorer II and the TI MicroExplorer (a LISP Machine on a NuBus board for the Apple Macintosh). AI application software developed by TI for the Explorer included the Gate Assignment system for United Airlines, described as “an artificial intelligence program that captures the combined experience and knowledge of a half-dozen United operations experts.” In software for the PC, they introduced “Personal Consultant” a rule-based expert system development tool and runtime engine, followed by “Personal Consultant Plus” written in the Lisp like language from MIT known as Scheme, and the natural language menu system NLMenu.

Sensors and controls

Texas Instruments was a major OEM of sensor, control, protection, and RFID products for the automotive, appliance, aircraft, and other industries. The S&C division was headquartered in Attleboro, Massachusetts.

In 2006, Bain Capital LLC, a private equity firm, purchased the Sensors & Controls division for $3.0 billion in cash. The RFID portion of the division remained part of TI, transferring to the Application Specific Products business unit of the Semiconductor division, with the newly formed independent company based in Attleboro taking the nameSensata Technologies.

Software

TI sold its software division (along with its main product, the IEF) to Sterling Software in 1997. It is now part of Computer Associates. TI still owns small pieces of software though such as the software for calculators like TI Interactive!. TI also creates a significant amount of target software for its digital signal processors, along with host based tools for creating DSP applications.”

*Information from Forbes.com and Wikipedia.org

**Video published on YouTube by “texasinstruments