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Texas Instruments shareholders want the company to exit the mobile chip business

Posted: , by Alan F.

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Texas Instruments shareholders want the company to exit the mobile chip business
We've made it a point to mention how many new smartphones are coming to market with Qualcomm's MSM8960 S4 processor doing the heavy lifting. Integrated chips like the S4 and NVIDIA's upcoming Tegra 3+ are making Texas Instrument's decision to exit the mobile baseband chip market at the end of the year look prescient. By the company's shareholders want more and worry that the tech firm can't compete with handset manufacturer's like Samsung, Apple and even Huawei designing their own chips.

"They need to recognize the market opportunity is not as big going forward as it has been. They can probably milk what they have for a while but ultimately it's going to get harder and harder."-Dan Fletcher, a managing director, Neuberger Berman
The stockholders would like to see TI exit the mobile chip business entirely. It's once prosperous customers like RIM and Nokia are going through tough times and even a fairly steady customer like Motorola is now using the S4 on its high-end models instead of TI's OMAP line. Bernstein Research analyst Stacy Rasgon says that the company should sell the remaining mobile chip line. While he couldn't come up with a list of buyers, he thinks that just perhaps LG or Huawei could be interested.

The OG Motorola DROID used a TI OMAP processor

The OG Motorola DROID used a TI OMAP processor

With Qualcomm and NVIDIA showing that the future is in "all-in-one" chips, TI's stand-alone chips are not providing the company with the kind of returns that it needs to compete in the business. The stockholders who want TI to exit the business aren't Ma and Pa Kettle with 100 shares. These are the big mutual funds that own hundreds of millions of dollars in TI stock and whose collective buying or selling decisions can move the price of the stock.

Texas Instruments is now selling its OMAP line to other manufacturers, such as those in the automobile business. Shareholders would just like to see the company focus on its profitable analog chips business where it doesn't have to face cutthroat competition and pricing.

source: Reuters

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posted on 13 Aug 2012, 11:06 7

1. master0fursinz (Posts: 104; Member since: 26 Apr 2010)

if TI is selling someone is going to buy and change up this hardware to make it more competitive and make a killing. i think these shareholders need to rethink this move. I say they go in and redesign a chip to keep up with the demands and make new partnerships. this is only the opinion of a droid user though.

posted on 13 Aug 2012, 22:20 1

45. Dr.Phil (Posts: 1639; Member since: 14 Feb 2011)

I agree completely, and I think I should add that what you are saying is most likely what the leaders over at TI are doing right now. The problem is the shareholders are mostly interested in making money, and they want to make money as quickly as possible. So, for them, it would be easier for the company to keep doing what it use to do instead of spending time and money in the mobile market. It's very possible for TI to spend the resources and create a great mobile chip brand, but the shareholders see the amount of resources and time you would have to spend as a somewhat big risk and they would much rather play it safe (or so it seems).

It'll be interesting to see what TI does, but I do hope they take that risk and go forward in the mobile chip market.

posted on 13 Aug 2012, 11:14 7

2. amancarlos (Posts: 42; Member since: 09 May 2012)

*TI is known for their open hardware
*till what I've heard OMAP 5 rocks.
*LTE is not necessary to sell in the international markets

hope the shareholders are reading this

posted on 13 Aug 2012, 11:39 2

4. nyamo (Posts: 274; Member since: 19 Mar 2011)

I've always liked TI for being modder friendly. They may not be the power house like what Samsung makes but the less proprietary blobs needed to work around the better

posted on 13 Aug 2012, 11:20

3. OpTiMuS_BlAcK (Posts: 418; Member since: 04 May 2012)

Maybe Intel is facing the same problem too~

posted on 13 Aug 2012, 11:55 1

6. TylerGrunter (Posts: 1543; Member since: 16 Feb 2012)

What Intel is facing is too much time being a psedo-monopoly and being used to sell their motherboards at the price they wanted. They are just not used to have real competition.
Their mobile SoCs are not that bad, but the price for them does not make sense for anyone to buy.

posted on 13 Aug 2012, 11:52 5

5. neutralguy (Posts: 1152; Member since: 30 Apr 2012)

do they realize that mobile chip business will be the future? If they just continue developing faster and greater chips, they won't be left behind. I hope they could see the big future of mobile chip business before they could be totally forgotten if they leave.

posted on 13 Aug 2012, 11:56 1

7. TylerGrunter (Posts: 1543; Member since: 16 Feb 2012)

I was going to post pretty much the same: if you are out of the mobile chips you are just out of the fastest growing (and in the future the biggest) for chip makers.

posted on 13 Aug 2012, 18:21

35. Phullofphil (Posts: 805; Member since: 10 Feb 2009)

I think they know what's at stake, the thing is its not just mobile chips that are the future but mobile in general. There other parts in the mobile devices that are apart of the future.and I think Texas instruments knows that and are finding there nitch in the industry.

posted on 13 Aug 2012, 12:07

8. Hammerfest (Posts: 384; Member since: 12 May 2012)

Have to agree with pretty much all of the previous posts...

Not to mention my extreme dislike for Qualcomm extending back to my HTC Titan days where they promised several times to implament a GFX driver and never did (and in the next 4 devices HTC put out with qualcrap chips as well)...

If It where up to me, id make it primarily TI, nVidia, and Samsung... screw qualcomm...

posted on 13 Aug 2012, 12:11 6

9. remixfa (Posts: 14605; Member since: 19 Dec 2008)

what short sited investors. Get out of the fastest growth vector pretty much in the world right now? What sort of lunacy is that. Especially when their last product was second only to exynos. If they need to retool for all in one solutions, then get to it. Get OMAP5 out and get moving.
Screw qualcomm, their chips suck and I'm tired of seeing them in "high end phones" when they are not high end chips. Its not about "samsung fanboy" like people like to proclaim, its about expectations and delivery. Ti has a history of delivering better than everyone but samsung. There is zero reason for them to exit the sector. There is every reason for them to double down though. If all in one is what the sector wants, then make it happen.

posted on 13 Aug 2012, 13:17 3

10. true1984 (Posts: 830; Member since: 23 May 2012)

We all know you don't like Qualcomm but we all have to be honest here, right now the have the best dual core chips available in the the market. And if the Pro is compatable with LTE like they say they might be on top until we get performance specs on the Exynos 5

posted on 13 Aug 2012, 13:27 2

12. nyamo (Posts: 274; Member since: 19 Mar 2011)

LTE does not make a phone. many markets over seas do not require LTE to sell a great phone. I for one avoid it like the plauge with ATT's small footprint right now. Next gen technology is not nearly mature enough to force every consumer on to it.

posted on 13 Aug 2012, 13:52

15. true1984 (Posts: 830; Member since: 23 May 2012)

But in the US it is a big deal, Thats why they care about making phones with LTE capability. If not then my EVO would've had a Tegra 3 instead of an S4. Besides you know they mostly use HSPA+ overseas right?

posted on 13 Aug 2012, 15:24

27. remixfa (Posts: 14605; Member since: 19 Dec 2008)

best how exactly? their only benefits are cheap cost and integrated lte. other than that the exynos whips it pretty handily in just about everying from battery to gpu. it manages to only be a hair better than the tegra 3 in some tests. the pro puts it barely above the a9 exynos quad in gpu.. it still cant keep up with the a15 exynos at all nor the proposed omap5. i dont put heavy consideration on LTE. battery and horsepower are way more important.

posted on 13 Aug 2012, 17:05 2

30. true1984 (Posts: 830; Member since: 23 May 2012)

the exynos in the galaxy note cannot out perform the s4. the quad core in the international version destroys the s4 but gets destroyed by the s4 pro. the s4 pro basically beats any mobile processor on the market right now, that's why i said it'll be on top until the exynos 5 comes out. and i havent seen any specs on omap 5 so i'll concede to that point. also like i said before us carriers are putting heavy emphasis on lte. and the last exynos was capable of lte, samsung didnt use it because the s4 was more powerful.

posted on 13 Aug 2012, 17:42 1

32. dmckay12 (Posts: 243; Member since: 25 Feb 2012)

It has one killer feature...It is on the market. The S4 Pro will be in phones months before the A15 quads are in phones (Samsung said that their Exynos quads will only be in tablets).

posted on 13 Aug 2012, 18:53 2

37. remixfa (Posts: 14605; Member since: 19 Dec 2008)

A15 quads havent been announced yet. Its A15 dual.

Samsung said that their exynos 5250 A15 will be in tablets FIRST and then into phones.. not exclusively to tablets. Its a production supply issue. Sell it through tablets while they ramp up production for phones which sell exponentially more.

That also doesnt mean that they could just be being funny and introduce it in everyone's favorite phablet, the Note2 which is to be unveiled this month some time... Not a big chance, but ya never know.

posted on 13 Aug 2012, 19:43

39. dmckay12 (Posts: 243; Member since: 25 Feb 2012)

My point is that they haven't even been announced. The S4 Pro will be in things is the next few months, but the A15s are still in planning stages. Chances are that the A15 duals will be slightly behind it. The GPUs might be slightly better, because they will be newer, but the processors themselves will be behind.

posted on 13 Aug 2012, 20:16

40. MISTER.H (banned) (Posts: 167; Member since: 03 Aug 2012)

I believe that ARM themself have a A15+ 8 core which runs at 3.0ghz and its not avaialable to public. Just imagine that along with a 4Gb ram and T658 mali 8 core overclocked to 527hz gpu.Wishfull thinking!

posted on 13 Aug 2012, 20:24

42. dmckay12 (Posts: 243; Member since: 25 Feb 2012)

I can't imagine that being useful, but that would be awesome. If they put it in a device now, I would buy it tomorrow. For now, the S4 Pro is what we can hope for.

posted on 13 Aug 2012, 23:02 1

48. remixfa (Posts: 14605; Member since: 19 Dec 2008)

Samsung has been demoing A15's in tablets for months. You guys need to catch up. They are production ready. The ONLY thing that might slow it up is LTE integration. Of course, being on a tablet that doesnt matter so much, which is another reason they are going tablet first.

And btw, its not just me that understands the tech, its the entire tech review industry that agrees with me.

"ther than that GPU which includes support for up to WQXGA (2,560 x 1,600) resolutions -- perfect for the 11.8-inch P10 mentioned in court filings -- and much more, the white paper uncovered by Android Authority also mentions support for features like Wi-Fi Display, high bandwidth LPDDR3 RAM running at up to 800MHz with a bandwidth of 12.8GBps, USB 3.0 and SATA III."


"The Exynos 5 Dual is the chip you should look for in upcoming tablets and smartphones, as it should have the most powerful CPU and GPU of any new chips coming out by the end of the year, including the S4 Pro and OMAP 5. Next year, we can begin talking about the quad-core Tegra 4 and the Exynos 5 Quad, but, until then, Exynos 5 Dual should reign supreme in the mobile market in terms of performance and features."


video demo

posted on 14 Aug 2012, 00:33 1

52. dmckay12 (Posts: 243; Member since: 25 Feb 2012)

They are not ready to be sold in devices yet. The S4 pro is already in devices that are coming out soon. It has moved past prototypes and Demos. Read the article. It says that the S4 Pro should be faster running apps designed for multiple cores.

posted on 14 Aug 2012, 05:55

54. MISTER.H (banned) (Posts: 167; Member since: 03 Aug 2012)

Qualcomm have 4 types of chip, apq. Msm. And another 2, I havnt looked up.

posted on 14 Aug 2012, 14:40

58. remixfa (Posts: 14605; Member since: 19 Dec 2008)


devices coming out around Xmas which is the same launch window of the A15 which is "Q4".
what about that is so hard? None of the Pro devices are coming out before Q4. Being rumored/announced doesnt mean anything on the timeline. How long was the Bionic announced before it came out ? 9 months? lol.

Samsung plays their chips close to the vest since they primarily use them for themselves. They didnt confirm that the S3 was going to be the Quad 4412 until just a week or 2 before it was officially unveiled.. Do you really expect them to tell you what phone the A15 is going to be in months before it happens?

Slightly faster in 1 category while being way slower in everything else. If an app opens in 0.3 seconds vs 0.4 seconds, do you really notice? Concentrate on all the features the Exynos 5 has that the Pro doesnt, and how much more powerful the vast majority of the shared features are on the E5.

Point is, you guys get your hopes up for impossible time lines. These chips will be dropping in commercial phones relatively at the same time.

posted on 13 Aug 2012, 20:18

41. MISTER.H (banned) (Posts: 167; Member since: 03 Aug 2012)

I cant wait to get hold of one and root it, and overclock it.

posted on 13 Aug 2012, 13:27

13. crankyd00d (Posts: 191; Member since: 17 Oct 2011)

Looks to me like they want to avoid the hassle of acquiring a baseband company as it would be very hard and expensive, and then they would need a couple of years to integrate that into their designs, the future is integrated or die and they know it, I hope they go for it, just as you said they make good chips, and losing competitors is never good

posted on 13 Aug 2012, 13:42 3

14. SuperAndroidEvo (Posts: 4888; Member since: 15 Apr 2011)


You normally post factual & true stuff. This time you clearly spoke with emotion instead of fact. It it clear that right now as it stands the Qualcomm Krait S4 is the KING of mobile processors, by a long shot.

They are insanely powerful & work with LTE out of the box. They work with ALL LTE's not just the ones in Korea like the quad-core Exynos 4.

The Qualcomm Krait S4 Pro dual-core clearly outclasses the Exynos 4 quad-core & is king right now in the benchmarks by such a HUGE margin. Who knows when the Exynos 5 will be in a phone or tablet. All I know is the Qualcomm dual-core S4 Krait Pro is right around the corner & by winter there will be quad-core S4 Krait's that will munch on Exynos 5 A15 dual-cores.

Who knows, you maybe having a bad day but you have never been more wrong like you are right now. Hopefully you will get your senses back & see the error of your way. To say Qualcomm chips suck is clearly opinion based & so far off the truth.

If you are going to release a "high end" phone right now the S4 Krait Pro is the ONLY way to go.

posted on 13 Aug 2012, 14:17 1

18. ph00ny (Posts: 1509; Member since: 26 May 2011)

Krait isn't the king until the quad core version in pro version gets released. By then they may get overrun by OMAP5 and Exynos5 again

posted on 13 Aug 2012, 14:27

20. SuperAndroidEvo (Posts: 4888; Member since: 15 Apr 2011)

Sounds more like hate to me. lol

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