SECURITIES AND EXCHANGE COMMISSION
Washington, D. C.
20549
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FORM 8-K
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CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) March 7, 1996
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TEXAS INSTRUMENTS INCORPORATED
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(Exact name of Registrant as specified in its charter)
Delaware 1-3761
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(State of Incorporation) (Commission File No.)
75-0289970
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(I.R.S. Employer Identification No.)
13500 North Central Expressway
P. O. Box 655474, Dallas, Texas 75265
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(Address of principal executive offices)(Zip Code)
Registrant's telephone number, including area code 972-995-2551
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ITEM 5. Other Events.
The information set forth in the Registrant's news release dated March 6,
1997 (attached hereto as Exhibit 21) is incorporated herein by reference to
such news release.
ITEM 7. Exhibits.
Designation of
Exhibit in
this Report Description of Exhibit
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21 Registrant's news release
dated March 6, 1997
SIGNATURE
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Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
TEXAS INSTRUMENTS INCORPORATED
By /s/ O. WAYNE COON
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O. Wayne Coon
Chief Corporate Counsel
and Assistant Secretary
Date: March 7, 1997
Exhibit Index
<TABLE>
<CAPTION>
Designation of
Exhibit in Paper (P)
this Report Description of Exhibit or Electronic (E)
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<S> <C> <C>
21 Registrant's news release E
dated March 6, 1997
</TABLE>
EXHIBIT 21
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News Release
C-97018
Media Contacts:
Neil McGlone (972) 995-4961 Kim Quirk (972) 927-4990
800-306-3305 (pager) (972) 597-6500 (pager)
(Please do not publish these numbers.)
Differentiated Products To Drive '97 Semiconductor Market
Digital Signal Processing Solutions Cornerstone of TI Strategy
Dallas, TX (March 6, 1997) -- The shape of semiconductor market trends in
1997 and beyond may just find a mold deep in the heart of Texas, according to
presentations made today by Texas Instruments executives at the company's
annual meeting for financial analysts and media.
TI (NYSE:TXN) forecasts a moderate recovery in the 1997 worldwide
semiconductor market of about 10 percent growth, following a decline of nine
percent in 1996.
The turnaround in the world semiconductor market is being led primarily
by differentiated product areas such as digital signal processors and mixed-
signal/analog chips, which should play right to the core of TI's strengths.
These differentiated semiconductors are expected to be among the fastest
growing areas of the market in 1997, outpacing the overall market by two to
three times.
"We are in a very strong leadership position in the digital signal
processing solutions (DSPS) market," said Tom Engibous, TI president and chief
executive officer. "We're by far the number one supplier of DSPs, and we've
moved up to the number two supplier worldwide of mixed-signal/analog chips.
Together, these capabilities provide significant competitive advantage to us
and to our customers."
Mr. Engibous said that in 1996 TI's leadership team developed a strategic
direction that the company is using to build strong market positions and
achieve a vision of 'world leadership in digital solutions for the networked
society.'
"The bottom line -- we believe DSPS is the biggest opportunity facing TI
since perhaps the invention of the integrated circuit in 1958. And we are not
going to miss it," he said.
Strength in End Equipment
TI's chief economist Vladi Catto said the company's 1997 projection is
based on continued strength in electronic end equipment, historically low
levels of customer inventories, and reduced capital spending as a percent of
industry revenues, which should help to better balance supply and demand.
TI's DSPS strategy cuts across several high-growth end equipment markets
around which it has formed worldwide business units to leverage TI's resources
and capitalize on marketing, technology and product strengths. These
businesses include wireless communications, networking, and mass storage
systems, where TI has developed application-specific solutions and strong
customer relationships.
TI is one of the leading semiconductor suppliers to each of these key
markets -- which are expected to grow at rates well above the historic
semiconductor market rate.
For example, TI's wireless communications business unit reached revenues
of more than $500 million in 1996, while providing DSP solutions in 23 million
digital cellular phones worldwide or about half of all digital cell phones
made last year. Market researcher Dataquest projects more than 40 percent
growth in the digital cellular market the next few years.
Similarly, TI is now the second largest networking semiconductor supplier
to the local- and wide-area network market, with about $400 million in
revenues and about 30 percent market share in 1996, up from 18 percent.
With its acquisition in 1996 of Silicon Systems, Inc. (SSi), TI became
the largest supplier of DSP solutions to the mass storage market, with more
than $1 billion in revenues. TI shipped 22 million units of DSPs to the hard
disk drive market in 1996, and expects that number to grow to 73 million DSPs
by 2000.
"Our long-term financial model in this vision calls for average annual
revenue growth of 20 percent and return on invested capital of 20 percent. As
we begin to realize our vision, TI has the potential to move into the ranks of
the premier electronics companies -- companies that typically earn recognition
for a market capitalization several times their annual revenues."
# # #
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995:
With the exception of historical information, the matters discussed in this
news release are forward-looking statements that involve risks and
uncertainties including, but not limited to, economic conditions, product
demand and industry capacity, competitive products and pricing, manufacturing
efficiencies, new product development, timely completion of announced asset
sales, ability to enforce patents, availability of raw materials and critical
manufacturing equipment, new plant startups, the regulatory and trade
environment, and other risks indicated in filings with the Securities and
Exchange Commission.
NOTE TO EDITORS: Texas Instruments Incorporated, headquartered in Dallas,
Texas, is one of the world's foremost high technology companies, with sales or
manufacturing operations in more than 30 countries. TI products and services
include semiconductors; software productivity tools; mobile computing products
and consumer electronics products; electrical controls; and metallurgical
materials.
More information about TI is located on the World Wide Web at
http://www.ti.com
