Texas Instruments stands as a pioneering force in semiconductor innovation, transforming from a geophysical services provider into one of the world’s leading analog and embedded processing chip manufacturers. Founded in 1930, the company has shaped modern electronics through groundbreaking inventions including the integrated circuit and the handheld calculator.
Headquartered in Dallas, Texas, the company designs and manufactures semiconductors that power everything from industrial equipment to consumer electronics. Texas Instruments operates through two primary segments focusing on analog technology and embedded processing, serving customers across automotive, industrial, personal electronics, communications equipment, and enterprise systems.
With operations spanning more than 30 countries, Texas Instruments maintains a commitment to manufacturing excellence and technological innovation. The company’s strategic investments in 300mm wafer fabrication facilities position it for continued growth in the expanding semiconductor market.
Key Stats
Texas Instruments History
J. Clarence Karcher and Eugene McDermott founded Geophysical Service, providing seismic exploration services to the petroleum industry and laying the foundation for Texas Instruments.
McDermott, along with J. Erik Jonsson, Cecil H. Green, and H.B. Peacock, purchased Geophysical Service Inc. and began expanding into electronics for military applications during World War II.
The company was reorganized and renamed Texas Instruments as the Laboratory and Manufacturing division grew faster than the geophysical services business.
Texas Instruments purchased a patent license from Western Electric to produce germanium transistors for 25,000 dollars, entering the semiconductor manufacturing business.
Gordon Teal created the first commercial silicon transistor at Texas Instruments, announcing it at the Institute of Radio Engineers National Conference, marking a major technological breakthrough.
Jack Kilby invented the integrated circuit while working in Texas Instruments’ Central Research Labs, demonstrating the world’s first working integrated circuit on September 12, 1958.
Texas Instruments invented the handheld calculator prototype known as Cal Tech, revolutionizing portable computation and opening new markets for semiconductor applications.
The company developed the single-chip microcomputer and was later assigned the first patent on a single-chip microprocessor, invented by Gary Boone.
Texas Instruments introduced the first single-chip speech synthesizer and launched Speak & Spell, incorporating groundbreaking voice synthesis technology that captured public imagination.
The Defense Systems and Electronics Group won the Malcolm Baldrige National Quality Award for manufacturing excellence, recognizing the company’s commitment to quality improvement.
Texas Instruments sold its defense business to Raytheon for 2.95 billion dollars, allowing the company to focus exclusively on semiconductor manufacturing and development.
Jack Kilby received the Nobel Prize in Physics for his invention of the integrated circuit, bringing global recognition to Texas Instruments’ pioneering contributions to electronics.
Bain Capital acquired the Sensors and Controls division for 3.0 billion dollars in cash, which became the independent company Sensata Technologies.
Texas Instruments continues expanding manufacturing capacity with ongoing construction and equipment installation at multiple 300mm wafer fabrication facilities to support long-term demand growth.
Texas Instruments Co-founders
Co-founded Geophysical Service in 1930 and purchased the company in 1941. McDermott helped transform the organization from seismic exploration into electronics manufacturing and semiconductor innovation.
Joined as a founding partner in 1941 when purchasing Geophysical Service Inc. Jonsson contributed to the company’s expansion into defense electronics and semiconductor manufacturing during its formative years.
Became a founding partner in 1941 and helped guide the company’s transition from geophysical services to electronics manufacturing. Green’s technical expertise supported Texas Instruments’ early semiconductor development efforts.
Hired as general manager of the Laboratory and Manufacturing division in 1945, Haggerty led the company’s entry into semiconductor manufacturing and drove its transformation into Texas Instruments.
Texas Instruments Acquisitions
Texas Instruments has pursued a measured acquisition strategy focused on strengthening its core semiconductor capabilities and expanding into complementary technology areas. Unlike many competitors who grew through aggressive merger activity, Texas Instruments has maintained a more selective approach to acquisitions throughout its history.
Among the company’s significant acquisitions, the purchase of National Semiconductor in 2011 represented a major consolidation in the analog semiconductor market. This transaction strengthened Texas Instruments’ position in analog technology and expanded its product portfolio across multiple application areas. The integration brought together complementary engineering teams and manufacturing capabilities.
Earlier strategic moves included acquiring companies that enhanced specific technology capabilities. The company purchased various smaller semiconductor firms during the 1980s and 1990s to expand its product lines and enter new market segments. These acquisitions typically focused on adding specialized analog and mixed-signal technologies to the existing portfolio.
In the embedded processing space, Texas Instruments made strategic purchases to strengthen its microcontroller and digital signal processing offerings. These acquisitions brought experienced engineering talent and established customer relationships that accelerated product development and market penetration.
The company has also divested non-core businesses to maintain strategic focus. The 1997 sale of the defense electronics division to Raytheon for 2.95 billion dollars represented a pivotal shift toward pure semiconductor operations. Similarly, the 2006 divestiture of the Sensors and Controls division to Bain Capital for 3.0 billion dollars allowed Texas Instruments to concentrate resources on analog and embedded processing semiconductors.
Throughout its history, Texas Instruments has balanced organic growth through research and development with targeted acquisitions that add complementary capabilities. This measured approach has enabled the company to maintain manufacturing excellence while expanding its technology portfolio in areas aligned with long-term market trends in industrial and automotive electronics.
Texas Instruments Competitors
Texas Instruments operates in a highly competitive semiconductor market, facing challenges from both broad-based suppliers and specialized niche players across its analog and embedded processing segments.
| Competitor | Industry Focus | Headquarters |
|---|---|---|
| Analog Devices | Analog & Mixed-Signal ICs | Wilmington, Massachusetts |
| Infineon Technologies | Power & Automotive Semiconductors | Neubiberg, Germany |
| STMicroelectronics | Semiconductors & Microcontrollers | Geneva, Switzerland |
| NXP Semiconductors | Automotive & IoT Solutions | Eindhoven, Netherlands |
| Microchip Technology | Microcontrollers & Analog | Chandler, Arizona |
| Renesas Electronics | Automotive Microcontrollers | Tokyo, Japan |
| Intel | Processors & Embedded Systems | Santa Clara, California |
| ON Semiconductor | Power & Sensing Solutions | Scottsdale, Arizona |
| Maxim Integrated | Analog & Mixed-Signal ICs | San Jose, California |
| Cirrus Logic | Audio & Precision Mixed-Signal | Austin, Texas |
Texas Instruments Market Cap
Texas Instruments has demonstrated consistent value creation through strategic focus on analog and embedded processing semiconductors, though its market capitalization reflects cyclical dynamics in the semiconductor industry.
Texas Instruments Revenue
Texas Instruments generates revenue primarily through its analog and embedded processing segments, serving diverse end markets including industrial, automotive, personal electronics, and communications equipment applications.
The company reported revenue of 15.6 billion dollars for fiscal year 2024, reflecting the cyclical nature of semiconductor demand. Third quarter 2025 revenue reached 4.7 billion dollars, representing 14 percent growth year over year as the semiconductor market recovery continued.
FAQs
What does Texas Instruments manufacture?
Texas Instruments designs and manufactures analog and embedded processing semiconductors used in industrial equipment, automotive systems, personal electronics, communications infrastructure, and enterprise systems across global markets.
When was Texas Instruments founded?
Texas Instruments was founded in 1930 as Geophysical Service Incorporated. The company was reorganized and renamed Texas Instruments in 1951 when entering semiconductor manufacturing.
Who invented the integrated circuit?
Jack Kilby invented the integrated circuit at Texas Instruments in 1958, demonstrating the first working prototype on September 12. He received the Nobel Prize in Physics for this invention in 2000.
Where is Texas Instruments headquartered?
Texas Instruments is headquartered in Dallas, Texas, with design, manufacturing, and sales operations in more than 30 countries worldwide serving over 100,000 customers globally.
What are Texas Instruments main products?
Texas Instruments produces analog semiconductors including amplifiers, data converters, and power management chips, plus embedded processors such as digital signal processors and microcontrollers for diverse applications.