TI Expands Its Low-Cost MCU Portfolio With DesignDRIVE And World’s Fastest ADC
Texas Instruments (NASDAQ:TXN) just launched DesignDRIVE — a single hardware and software platform that makes it easier for engineers to develop and evaluate solutions for many industrial drive and servo topologies. The DesignDRIVE kit offers an easy path to begin exploring a wide variety of motor types, sensing technologies, encoder standards and communications networks, as well as easy expansion to develop with real-time Ethernet communications and functional safety topologies, enabling more comprehensive, integrated system solutions. Based on the real-time control architecture of TI’s C2000™ microcontrollers (MCUs), DesignDRIVE is ideal for the development of industrial inverter and servo drives used in robotics, computer numerical control machinery (CNC), elevators, materials conveyance and other industrial manufacturing applications. [1]
TI also introduced the world’s fastest 16-bit ADC(Analog-to-Digital Converter), four-channel 14-bit ADC, and digital variable gain amplifier, delivering the highest performance for wideband equipment. This is the industry’s first 16-bit 1-GSPS ADC, four-channel 14-bit 500-MSPS ADC, and 4.5-GHz DVGA with DC-coupling, offering best-in-class signal analysis accuracy. [2]
Since its exit from the smartphone and tablet market in September 2012, TI has transitioned its operations to become a pure analog and embedded processing company. Its embedded division includes processors, microcontrollers, and connectivity products, which account for approximately 50%, 45% and 5% of its embedded revenue, respectively. While TI has a leading market share in processors, the company is still relatively under-represented (~6% market share) in the microcontroller space. Since the last 3-4 years, TI has increased its focus on microcontrollers, with significant and repeated product enhancements.
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Our price estimate of $50 for TI is at an approximate 10% discount to the current market price.
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An Expanding Product Portfolio Will Increase TI’s Footprint In Microcontrollers
Over the last few years, TI has expanded its investments to broaden its microcontrollers portfolio and increase its application support for devices, which has helped increase its market share over the past several years. As already mentioned above, TI accounts for 6% of the global microcontroller market at present. The company now has a wider product portfolio with microcontrollers ranging from $0.25 up to a couple of dollars using all different combinations of its connectivity products.
TI marked its tenth consecutive quarter of year-on-year growth in the embedded business in Q1 2015, and a big part of that was driven by growth in microcontrollers. The company intends to continue investing in this area, expanding its product offering of controllers and increasing the number of dedicated field application engineers positions to better serve its customers. Such actions should help it to grow its market share in the future.
There is a lot of scope for TI to expand its presence in the microcontrollers space, and given the growth potential in the market, an expanding footprint in this domain will augur well for TI’s growth potential.
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