Gregg Lowe: TI analog business will become a source for further growth of the company
TI senior vice president and SN74LS14DR datasheet and Analog Devices Gregg Lowe, head of business plans to business unit income accounted for a percentage of total revenue from the current 40% of the economic downturn to 50% or more, which prompted him to find ways to increase sales.
TI Analog Business revenue in 2007 grew 4% to 4.93 billion U.S. dollars, but because of reduced demand in 2008 dropped to 48.6 billion U.S. dollars. Analog Devices Division for the TI in 2007 the company contributed operating profit of 1.55 billion U.S. dollars, did not expect the competition in 2008 fell to 1.1 billion.
Even so, Lowe believes the companys future growth will come from analog business, many industry analysts also agreed that TI will eventually become a more well-known supplier of analog, not DSP company, especially if the company will continue to TI Analog Devices Division to increase investment to say.
Order to ensure that the growth rate in this area, Lowe spent more time recently on the road, not only in the traditional North American and SN74LS14DR price and European regions, also in China and SN74LS14DR suppliers and India frequently shuttle between major cities in order to win more design share.
Recent trip to several cities in India, he found that many companies are very powerful in the period of cost-cutting continues to rely on TIs sales force to help their own design work. According to him, TI also explore solar and power management the field of opportunity, although the management strategy are turning to cutting operating costs in response to falling demand.
TI and other competitors simulate the greatest challenges facing the field is to help customers against the difficult economic environment, and for the growing solar energy industry, energy management and design products.
Although TI is focused on the small "snack-type" transactions, rather than those who help themselves to establish a strong position in the market of large-scale acquisition activities, but TI wants to continue to maintain its dominant market position, we must continue to carry out M & A activity in the analog domain.
The following are met
EE Lowes conversations with reporters:
TI analog market segment in the overall strategy?
Speaking from the highest level, TI has a very comprehensive and simulation of business-related strategies. Our business is divided into three sub-business simulation. The first is the high-performance operations, including data converters, amplifiers and interface devices, and these applications have been used in many different standard products.
Second is the power management business, as its literal meaning, as including power management, DC / DC converter controller. The third business is a high volume analog devices, mainly used in large quantities and the relative concentration of the equipment.
Three different business form TIs complete analog business, we are very extensive way into the market. We need to do is to solve the many problems users, not just one of them.
With wide range of applications for a full range of high-performance analog and power management chip standard chip, TI has the ability to solve customers problems. Indeed, these products help our customers to solve all sorts of challenges.
In the analog market as a supplier to provide rich product, and its advantage is self-evident, but whether it also means that TI must be in R & D, sales and marketing activities to devote more resources to provide strong support?
Your argument is correct. Our business in the sub-lot of work to be done, and in fact we did do quite well. Many market analysts agree that, TI in power management, amplifiers, interface and data converter area is one of the best, this also means that we have in the child a very good business reputation. We are willing to pay a lot of time and effort to ensure that the various components of our best products with the industry able to compete.
And only supplier to provide products, gives the complete solution providers can help customers faster time to market. This strategy also allows a better understanding of TI company customer base, in other words, to attract more customers, especially small customers.
We can do this because of our extensive product development stage to enable us to close a small customer as soon as possible, because their purchases of semiconductor start-ups may be as early as relatively small. TI able to attract such customers is relatively small because we can learn from their semiconductor spending a higher share.
The second part of your question is the relative size in terms of our cost disadvantage. I did not notice that this is a problem. In fact, we upheld the view that we have a cost advantage, because we can play a more extensive series of worldwide sales force. In the development of our products very competitive and has been manufacturing professional with a long history of products and improved yields.
At the corporate level, TI CEO of the companys analog business often talked about the importance of the future. TI, in the analog domain so the real goal? How will achieving these goals? In other words, you have no plans to expand through acquisitions or internal growth to keep it?
In the last 9 or 10 years we have been carrying our simulation strategy, this time we can do is to establish a relatively solid foundation. I believe that, no matter from which side the field of TI is the first simulation, but also in the converters, amplifiers, interface and power management business also has a strong sub-status.
However, while in the simulation field TI occupy the first position, but still only 13% market share. Therefore, this market is very large, about 350 billion U.S. dollars to 36 billion U.S. dollars of magnitude, which are the leading supplier of only a very small market share. For us, this means that TI is facing tremendous growth opportunities.
If we now sits on 90% market share, it is difficult to imagine to get the remaining 10%. Simulation of the market may be around a few large suppliers for further integration, which is obviously what we want to do.
TI analog business will become the companys main growth engine. We have mentioned before, TIs analog business is currently 40% of total revenue. And we can clearly see that the business can improve the simulation of TIs sales, because we believe this is an excellent development opportunities. P>