Texas Instruments (TI) has shrugged off the effects of the Covid-19 pandemic in its 2020 results, and points to its in-house production and inventory management as key to avoiding the current chip shortages in the automotive industry.
"Revenue increased 7 percent sequentially, driven by strong demand in automotive, personal electronics and industrial markets, [up] 22 percent from the same quarter a year ago,” said Rich Templeton, chairman, president and CEO of TI. "In our core businesses, Analog revenue grew 9 percent and Embedded Processing grew 11 percent sequentially. From a year ago, Analog revenue grew 25 percent and Embedded Processing grew 14 percent.”
On a year-over-year basis, Analog revenue grew 25 percent and Embedded grew 14 percent. The ‘Other’ segment, mostly calculators, grew 4 percent from a year ago quarter.
First, the automotive market continued its rebound following the second quarter bottom, with 19 percent sequential growth and 25 percent year-over-year growth. The industrial market was up 7 percent sequentially and 16 percent from the year ago. The strength was seen across most market sectors. Personal electronics, including analog and power management chips for smartphones was up 11 percent sequentially and up 39 percent compared to a year ago. The strength was broad-based across sectors and customers within personal electronics.
Communications equipment was down 28 percent sequentially and down 8 percent from a year ago. Enterprise systems was down 2 percent sequentially and down 13 percent from a year ago.
For the full year, TI breaks down the results into six end markets: industrial; automotive; personal electronics, including products such as mobile phones, PCs, tablets and TVs; communications equipment; enterprise systems; and other. Total revenue of $14,461bn was up from $14.383bn in 2019 with a profit of $5.595bn, up from $5.017bn.
This is despite the closure of automotive manufacturing lines during the year.