Texas Instruments (NYSE:TXN) launched its new line of ARM® Cortex™-A8 microprocessors multiple integrated industrial communication protocols aimed at the industrial automation market. It looks to strengthen its position in industrial electronics further with new products and the National Semiconductor acquisition. Texas Instruments competes with other semiconductor manufacturers like Qualcomm (NASDAQ:QCOM), Broadcom (NASDAQ:BRCM), STMicroelectronics and Renesas Electronics Corporation.
The Sitara™ AM335x ARM Cortex-A8 microprocessors, launched recently reduces power dissipation levels below 7mW and provides a total industrial automation system solution. The main advantages of TI’s new microprocessors are:
- The microprocessor platform features multiple, on-chip, production-ready, industrial Ethernet and fieldbus communication protocols which eliminate the need for an external ASIC/FPGA and save 30 percent on costs
- The low-power ARM Cortex-A8 processor platform (275 MHz to 720 MHz) is scalable and hence suited for many different industrial automation applications, enabling extensive reuse and compatibility
- Industrial hardware development tools and comprehensive software and analog signal chain solutions enable designers to reduce their time to market.
Texas Instruments is the second biggest player in the almost $20 billion embedded processors market, with an almost 12% market share. Embedded microprocessors accounts for roughly 15% of its revenue.
Texas Instruments has been the market leader in industrial electronics, with a huge portfolio of products. Its recent acquisition of National Semiconductors, which also has a huge penetration in industrial segment, is expected to bolster its industrial electronics market share further. Embedded microprocessors account for nearly5% of our $36.50 price estimate which is around 30% above its market price.