Texas Instruments Launches Lowest Power RF Synthesizer, Enhancing Its Offering

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TXN: Texas Instruments logo
TXN
Texas Instruments

Texas Instruments (NASDAQ:TXN) has recently launched LMX2571, the industry’s most power efficient wideband radio frequency (RF) synthesizer. The LMX2571 RF synthesizer is available for purchase in a 6 mm X 6 mm quad flat no-leads (QNF) package at $5.50 in 1,000-unit quantities. The LMX2571 enhances radio sensitivity and dynamic range for applications like low-power wireless communication, handheld oscilloscopes and signal analyzers. An integrated frequency modulator enables user to directly modulate the carrier to produce analog frequency modulation or frequency-shift-keying for land mobile radios, software-defined radios and wireless microphones. Other features include an integrated feature to remove integer boundary spurs; integration of low-dropout regulators, a 5-V pump, and a fast transmit/receive switch reduces bill of materials and solution footprint. [1]

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.

The LMX2571 is the first RF synthesizer in the industry with an integrated feature to remove integer boundary spurs (IBS), allowing designers to eliminate spurious emissions and maximize use of radio channels in their wireless systems. The launch will enhance TI’s differentiated product pipeline and is expected to improve market share for TI, thereby boosting revenues. However, Texas Instruments operates in an intensely competitive industry and companies such as Analog Devices can pose stiff competition.

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TI accounts for over 18% of the analog market. With the acquisition of National Semiconductor, a strengthening product portfolio and growth in high volume analog and logic segments, we believe that the company is well equipped to leverage increasing demand for analog products. TI’s analog product portfolio consists of high volume analog & logic, high-performance analog and power management circuits. It caters to over 80,000 customers from various industries such as computing, wireless communication, infrastructure, automotive, telecom, etc. TI is the market leader in voltage regulators, which is expected to be a strong growth driver for the analog market. The segment contributes around 30% to TI’s total analog division revenue.

TI plans to reduce costs in certain embedded processing product lines that either have matured or do not offer the return opportunities the company is looking for. The company has clarified that is does not plan to exit any market or discontinue any existing embedded products, but is simply realigning its resources to better cater to market opportunities. It expects the ongoing changes to improve the profit margin in embedded business while still maintaining its pace of growth.

Our price estimate of $50 for TI is at an approximate 7% discount to the current market price.

See our complete analysis of Texas Instruments here

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Notes:
  1. Texas Instruments Launches Wideband RF Synthesizer, Nasdaq, June 22nd, 2015 []