Acerca de TXN
"I think you will do fine with them and by say 2025 be very happy you owned them. They own the market they are in for 300mm analog wafers no one does them cheaper or better and the customers are really “sticky” ones and all of them will be wanting more over the next decade.
They also provide other types of thingss for some of the biggest names around like AAPL for instance.
You don’t need to be a silicon chip expert to own TXN all you really need to know is these two things imho.
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TXN 300 mm fab for analog chips is 40% less expensive than chips produced using the 200 mm fab used by many of it’s competitors which gives them a huge pricing advantage in that market. And their throughput (no waste) and analog chip quality outshine them all. Better more reliable devices for less money is a tough combination to compete against.
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While the upfront cost for the fab plant is huge 300 mm analog production equipped ones might be operated for as long as 20 to 30 years. Digital chip fab plants cost a lot also but are constantly having to change equipment as the design sizes get smaller. It’s why so many of the larger companies simply outsource their actual digital chip production to ones like Taiwan semi conductor.
The role analog chips play is going to continue to grow many fold larger going forward in to many ways to list here. One quick easy to understand use that shows that continued growth is in vehicles where just one use of them among a dozen others in cars alone air bags grew them in use several times larger then when first applied. Now days ? many times different system devices on a vehicle are dependent on others and analog sensors are often one of those things systems they depend on.
How many air bags in your Prius now ? my bets more then 1 or 2 like when they first came along and it’s analog “impact sensors” that trigger them to go off. As for systems growth automatic emergency braking, lane departure warning, blind spot monitoring, and backup cameras. All these features are requiring high numbers of sensors, including analog ICs and MCUs.
And the harder they push to autonomous vehicles the more “systems” doing the actual driving they will need.
And last see all of the IOT age devices growing in use ones talking communicating standing guard reporting in on and on many of them also use analog chips in one way or another to function.
Another easy to understand similar example of analog chip longevity use is that dryer electric switch I replaced the other day here. That electric switch like many analog sensor chips fits over a dozen different dryer makes and models and covered a in production time period of around 15 years.
Product designers are reluctant to switch for many reasons but having the least expensive more reliable analog chips around also certainly keeps them using TXN ones too.
When that airbag or other device doesn’t do what it’s supposed to people tend to get mad and TXN makes some of the most reliable ones out there.
Darn it now I want some of them again too, still waiting to see if QCOM gets beheaded or pardoned, maybe in May.
Vince
Sorry for the ramble but TXN and it’s analog chip market is quite a bit different then the digital semi chip one. Though they make other types along with many other different devices too like the power-management component (battery DC converter) that Apple uses in some models.
It’s why I like to look at some of those independent “'tear downs” to see what is in use when they come out.
If you need a good sign for TXN over the next five years or so keep an eye out for growing in size and again right there in Texas."