The Next 30:#49 Texas Instruments India

Texas Instruments India, the semiconductor design and manufacturing company, saw an estimated decline of around 6% in revenue in fiscal 2014. Subsequently, its ranking has come down to 49 from last year's 39. Lower revenue from legacy wireless products and changes in customer demand led to the fall.

The layoffs that started in the previous year continued in fy2014. In the last quarter, Texas Instruments(Global)announced cost saving actions including the elimination of about 1,100 jobs in US, Japan and India. Total restructuring charges related to these actions are expected to be about $80 mn. It indicated that the plan is not to exit any market or discontinue any existing products but to reduce investments in markets that do not offer sustainable growth and returns.

The company has been facing tough competition in the mobile phone chip market. Hence its plans of shifting focus from the mobile market to more profitable areas, does not come as a surprise. TI has made its intentions clear that it is going to focus more on analog and embedded processing. The company reported that its performance reflects the positive structural changes in that direction.

Analog and embedded processing are now 80% of TI's global revenue, eight points higher than a year ago. The embedded processing segment paid off well in fiscal 2014. The combined revenue from these two businesses grew 10% sequentially and seven percent from a year ago.

In segment classified as ‘other' revenues declines primarily due to lower revenue from legacy wireless products.