TI To Pick Up National Semiconductor Business

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Apr 8, 2011 5:39 PM, By Michael Grotticelli

Texas Instruments (TI) has concluded to buy National Semiconductor in an all-cash contract of about $6.5 billion. If the treat goes through, design minimal affects on broadcasters.

According to IHS iSuppli, formed on last results from the year 2010, the merger would make TI the world's third-largest semiconductor company. The amalgamated companies would have revenues of $14.5 billion, compared to $13 billion for Toshiba, that would drop to fourth place.

Both companies will run exclusively tentative shut of the acquisition, that is approaching to take 6 to 9 months, according to TI.

TI has 30,000 analog products, whilst National Semiconductor has 12,000 such products. Combined, the two companies' sales of analog semiconductors will act for roughly half of TI's revenues. The amalgamated firm moreover will gain from National's production operations, located in Maine, Scotland and Malaysia, that TI will go on to operate. Each site has extra ability to enlarge production, and National's domicile will sojourn in Santa Clara, CA.

TI remarkable that the marketplace for analog semiconductors was $42 billion in 2010, and it was the marketplace personality with revenues of $6 billion, or 14 percent of the market. National's revenues in monthly calendar year 2010 were about $1.6 billion, or 3 percent of the market.

Within the analog segment, the merger will quite accelerate Texas Instruments lead in the marketplace for voltage regulators. Texas Instruments was the heading voltage regulator retailer in 2010, with $1.7 billion in income and a share of 18.1 percent. National was the third-largest supplier, with $758 million in income and 15.2 percent in revenue. With the acquisition, Texas Instruments' voltage regulator income would amount to $2.4 billion in 2010, giving it a 26.5 percent share of the market.