Texas Instruments (TXN) is the world leader in analog chips, and the company is a key supplier of embedded semiconductors in a wide variety of markets and applications. Analog and embedded processing products are pervasive technologies, all kinds of electronics devices use some form of analog chips and most use embedded processing.
The company's main end markets are highly fragmented and diversified, and Texas Instruments' products have a relatively long life cycle, which generates a stable revenue base and attractive returns on invested capital for the company.
Texas Instruments has solid competitive strengths sustained by its intellectual properties around proprietary chip design and unique manufacturing capabilities. The industry is characterized by high switching costs since it's hard for electronics manufacturers to change their suppliers once a device is designed with a particular product.
