Global Sources
EE Times-Asia
Stay in touch with EE Times Asia
EE Times-Asia > Controls/MCUs

Comment: TI should revamp MCU strategy

Posted: 29 May 2009 ?? ?Print Version ?Bookmark and Share

Keywords:TI MCU business? microcontroller? DSP? analog?

Former CEO of General Electric (GE) Jack Welch once said that each of that company's businesses must be number one or number two in its respective marketplaces. If not, that business would be fixed or sold.

That axiom has become commonplace in today's business thinking. That's why I think Texas Instruments Inc. is still unhappy with its position in microcontrollers and needs to do more to expand its wings in the arena.

TI is the world's leading supplier of analog ICs and DSPs. In 2008, TI had more than $720 million in microcontroller sales and was ranked No. 8 worldwide, according to Gartner Inc.

To boost its efforts, TI recently acquired Luminary Micro, a supplier of MCUs, for an undisclosed price. Luminary Micro sells ARM Cortex-M3-based 32bit MCUs.

In a report, Tony Massimini, an analyst with Semico Research Corp., made these observations: "The TI ARM MCU roadmap has appeared stagnant for the last couple of years. The Luminary acquisition changes this and puts TI back on the ARM MCU fast track."

"The acquisition of Luminary Micro is another proof point that TI is getting serious about the embedded processing market," added Amy Leong, an analyst at Gartner, in a recent report. "Amid the economic downturn, TI is shifting its business strategywinding down the wireless baseband business and prioritizing embedded market growth. Microcontrollers for embedded applications have been a proven business model in terms of profitability, as evidenced by Microchip's success in the 8bit market in the last decade."

The good and the bad
There's both good and bad news for TI. Good news: "The addition of Luminary Micro's Stellaris family of Cortex-M3 processors will accelerate TI's ability to provide the industry's most-complete MCU portfolio," Leong said. "TI has more than 300 MCU products, including the 16bit MSP430 family; ARM-Cortex-M3-based 32bit Stellaris family (from Luminary Micro); DSP-based 32bit C2000 family for real-time control applications; and ARM7, Cortex-M3 and Cortex R4-based 32bit controllers for the automotive market."

Bad news: TI will gain little ground in MCUs with the acquisition, as Luminary Micro is a small, niche player. "Luminary Micro has been extremely focused on the industrial market and developed more than 140 products in its Stellaris product family. In 2008, the company had less than $5 million in revenue and about 65 employees," Leong pointed out.

1???2?Next Page?Last Page

Article Comments - Comment: TI should revamp MCU strate...
*? You can enter [0] more charecters.
*Verify code:


Visit Asia Webinars to learn about the latest in technology and get practical design tips.

Back to Top