Texas Instruments Inc. is buying National Semiconductor for $6.5 billion to merge two of the world's premier makers of analog chips, which are widely used in electronics to transform signals such as sound into digital form that computers can understand.
JORDAN ROBERTSON mentioned "the deal is the latest example of consolidation among big players in the technology world as trends such as the explosion in smartphones have shaken up the competitive landscape. Longtime foes have joined forces while friendships have frayed as the boundaries between companies' business lines have blurred."
According to TI SVP, Gregg Lowe, with the combination of National’s 12,000 and TI’s 30,000 analog products, customers will have an excellent portfolio. Together, TI will be able to partner with customers to solve system-level design challenges in motor designs, battery management, LED lighting, mobile applications.
Both TI and National Semiconductor have strong portfolio of power management microchips. iPod Touch and Motorola Xoom tablet use TI power management chips, according to IHS iSuppli. The average cell phone has as many as 30 different power management parts.