Last week, Texas Instruments announced that it has shipped more than 15 million Advanced Driver Assistance Systems System-on-Chip (SoC) devices so far, confirming the company’s leadership position in the automotive market. The ADAS is part of the technology that is pushing the concept of driverless cars. TI’s ADAS solutions, designed to help reduce the number of road collisions and enable more autonomous driving experiences, have been deployed by over 25 OEMs in more than 100 car models.

Leveraging its more than 30 years of experience in signal processing, safety and automotive systems, TI has developed an industry leading automotive SoC family (the TDA2x). Based on its recent analysis of the ADAS market, Frost & Sullivan recognized TI with the 2014 Product Leadership Award for Semiconductor Solutions for the ADAS Industry.

The automotive segment is a large market and is going through a transition to more compute-intensive electronics systems. It has been more than a decade since Motorola and others regularly publicized the average number of micro-controllers a car uses (for braking, ignition, etc.). Yet with the advance of semiconductor technology, complex integrated circuits (MCUs, DSPs, and SOCs) are used in increasingly complex computing and processing functions. Accordingly, the number of visual computing-focused processors in a car is growing at a rapid pace. Specialty Analytics expects the market for ADAS to be worth around $15 billion by 2016, with a CAGR of 23%.

Since its exit from the smartphone and tablet market in September 2012, TI has been focusing on transitioning its operations to become a pure analog and embedded processing company, segments that it believes will offer long term growth and less volatility, compared to the past. TI currently derives close to 20% of its revenue and 15% of its valuation from the embedded division, as per our estimate.

With increased investments over the past few years and new product launches, TI continues to expand its embedded portfolio every quarter. The embedded processing division reported its seventh quarter of consecutive year-on-year growth in Q2 2014 as TI’s investments over the past few years in strategic areas yielded favorable results. TI is in the process of realigning its resources in its embedded business to better cater to market opportunities. We believe that the automotive market is one of the key segments that will drive TI’s growth in the embedded market.

By: DocMemory
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