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🐂 TXN — Company Profile (Educational)

Educational site, not investment advice. Market cap / stock price / quarterly numbers change quickly, so we don't write them. Use SEC + Yahoo Finance links below to check current data.

📌 Basic Info

Field Value Source
Primary business Analog chips + embedded processors — world's largest analog chip maker, ~80,000 SKUs with broad industrial + automotive exposure 10-K
Founded / HQ 1930 / Dallas, Texas, USA wiki
CEO Haviv Ilan (joined 2023/04, formerly COO) company announcement
Primary listing NASDAQ: TXN —
Fiscal year Calendar year (Jan 1 - Dec 31) SEC EDGAR

💡 Real-time market cap / share price / segment revenue / fab capex progress: see SEC primary + IR links below

🏭 Industry Chain Coordinates (Part 1-C6 framework)

Upstream (Who TXN depends on)

Supplier What flows Key dependency
Own fabs (Richardson / Sherman / Lehi) Analog chip in-house capacity (world's largest 300mm analog) core dependency = self-supply (IDM model, unlike pure fabless)
ASML / AMAT / KLAC / LRCX Semiconductor equipment tied to fab capex cycle

Downstream (Who depends on TXN)

Customer What flows Concentration
Auto OEMs + Tier 1s Analog + embedded (auto ~30%+ of revenue) long-tail diversification
Industrial (factory automation / instruments / power) Analog + embedded (industrial is largest end market, ~40%+) long-tail diversification
Consumer electronics / communications equipment Analog chips smaller share
Personal electronics Cycle-driven smaller share

Competitors

  • Analog (direct): ADI (Analog Devices, main rival) · STMicro (STM) · Infineon (IFNNY) · NXP (NXPI) · ON (auto-grade)
  • Embedded MCUs: STMicro · NXP · Microchip (MCHP) · Infineon · Renesas (6723.T)
  • Chinese domestic substitutes: SG Micro · Will Semi · other long-tail Chinese analog firms

💼 Business Model + Value Capture (Part 1-C7 lens)

  • Revenue mix: Analog ~75% / Embedded ~17% / Other ~8%; by end market: industrial ~40%+ / auto ~30%+ / personal electronics + comms + enterprise the rest
  • Gross margin: Historically 60%+, varies with fab utilization cycle; heavy capex periods compress GM
  • Pricing power: Analog chips have very long lives (10-20 years); TXN has long-term design-in relationships — strong
  • Replacement difficulty: Per-chip analog value is low (~$0.5-5), but SKU breadth (~80K) + long qualification = no rationale to switch

(For segment / end-market revenue and growth, see latest SEC 10-Q)

🏰 Moat Assessment (Part 3-C2 Buffett 5-step lens)

Type Strength (0-1) Reasoning
Brand 0.5 B2B semiconductor; strong recognition in engineering circles
Switching cost 0.8 Analog chips have 10-20 year design-in, shared across many products
Network effect 0.2 No classic network effect
Scale + cost 0.9 World's largest 300mm analog fab footprint + IDM design/manufacturing integration

Total: 2.4 / 4 → strong moat (analog IDM physical infra + long-tail design-in)

⚠️ Key Invalidation Triggers (Part 3-C5 anti-thesis lens)

Monitor; if triggered, re-evaluate thesis:

  • Trigger 1 (annual): Analog cycle downturn — industrial + auto inventory destocking persists >4 quarters
  • Trigger 2 (medium probability): China analog localization accelerates (SG Micro etc. take >10% of TXN's China exposure)
  • Trigger 3 (event): U.S. CHIPS Act subsidy policy reversal / TXN large capex reimbursement canceled
  • Trigger 4 (quarterly): Gross margin YoY drop >500bps for 2-3 consecutive quarters (fab oversupply signal)
  • Trigger 5 (low probability): Auto electrification slowdown → auto-grade analog dollar-content-per-car misses expectations

📚 SEC Primary Public Filings (DYOR)

Live quote: Yahoo Finance TXN

Educational · Numbers change, the method does not · Make investment decisions based on your own research + risk tolerance