[TI thoughts]
<<<If TI knows SSPIF so well why not take SSPIF at bargain price??>>>
I'm sure there are many reasons, none of which I know. If I were to speculate, I'd say:
1) Spectrum doesn't want to be bought out. Hostile take-overs where intellectual property is the key commodity don't work.
2) Spectrum wants to be bought but TI's timing has them further down the road. Check out TI's purchases and then re-read some of Tom Engibous' speeches outlining goals for the "new TI."
I'm going out for the evening, but this should spark some discussion for when I return. :))
Regards,
Pat
Spring '96:
>>>
TI has announced the acquisition of Tartan Inc., a leading independent provider of software tools for developers of DSP applications. The business will be merged into the TI Software Development Systems (SDS) organization as part of the SC Group's DSP solutions business. Most Tartan employees will become TIers, and continue working at their current locations. No TI jobs are affected. Tartan's primary offices will remain in Pittsburgh, Pennsylvania.
"Tartan is a clear technical leader in DSP tools, and this acquisition shows our commitment to providing the best DSP development support available in the industry," said Mike Hames, SC Group vice president and worldwide DSP manager. "TI will be able to take advantage of Tartan's expertise and technology to dramatically accelerate DSP technology development and to provide the best customer application support in the industry. By combining the technical expertise of Tartan and TI will strengthen TI's leadership position in digital signal processing solutions and provide a technology base we can leverage throughout the rest of the decade and beyond." >>>
July '96:
<<<
Our acquisition of Silicon Systems, Inc -- the largest acquisition in our history -- extended our position in mixed signal/analog. Being the number two supplier in this area is possibly one of the best kept secrets in the industry, although we're working hard to spread the word. >>>
November '97:
<<<
TI to acquire Amati Corp.
Move strengthens TI's position in $6B xDSL market
To further strengthen its leadership in providing digital signal processing solutions (DSPS) for high-speed Internet connectivity, Texas Instruments has entered into an agreement to acquire Amati Communications Corp., based in San Jose, Calif.
Amati is a world leader in digital modem technology, also known as Digital Subscriber Line (xDSL), which lets ordinary phone lines transmit data as much as 200 times faster than today's typical analog voiceband modems. Robust implementation of xDSL makes extensive use of DSP semiconductor technology, an area in which TI reigns as world leader.
"The combination of Amati's xDSL technology and TI's digital signal processing solutions will enable faster, more reliable access to the Internet and the ability to use a single, existing phone line to simultaneously access voice, data and video," said Rich Templeton, president of TI's Semiconductor Group. >>>
December '97:
>>>
Texas Instruments to Acquire GO DSP Corporation
Texas Instruments Incorporated (NYSE: TXN) today announced that it has entered into an agreement to purchase GO DSP Corporation, a leading provider of digital signal processing (DSP) software tools. This acquisition helps TI further expand its extensive software offering to provide customers with more complete digital signal processing solutions. Terms of the agreement were undisclosed.
GO DSP, headquartered in Toronto, Canada, is a privately held company that specializes in advanced, fully integrated software tools, which allow DSP system developers to improve productivity and reduce time to market. The company is an industry leader with the only fully integrated programming environment with a graphical user interface. This technology complements TI's strong DSP performance and extends its ease-of-use advantage. >>>
January '98:
<<<
Texas Instruments to Acquire Spectron Microsystems from Dialogic Corporation
Purchase Enhances DSP Software Development Environment
Texas Instruments Incorporated (NYSE: TXN) announced today that it has entered into a definitive agreement to purchase the principal assets and operations of Spectron Microsystems, a wholly-owned subsidiary of Dialogic Corporation (NASDAQ:DLGC). While specific terms are subject to closing adjustments, it is expected that the purchase price will be in the range of $20 to $26 million. The acquisition further enhances TI's extensive digital signal processing (DSP) solutions offering, enabling its customers to shorten their time to market and to focus on features that differentiate their products.
Spectron Microsystems, located in Santa Barbara, California, develops and markets advanced system software, such as real-time operating systems (RTOS) for use in digital signal processing applications. The company is a leader in products that ease software development, eliminating some low-level programming tasks. With this transaction, TI will extend its leadership in digital signal processing solutions by offering the most complete development environment, simplifying DSP development and making TI DSP Solutions even more attractive for a broad range of fast-growing markets. >>>>
You will notice there were no purchases between mid '96 and November '97. In May of '96 TI's CEO, Jerry Junkins, died of a heart attack while in Germany on business, and Tom Engibous was elected CEO in June. The company spent the next year re-inventing itself and not until November of '97 did Engibous announce any acquisitions.
January 5, 1996, TE gives speech in India:
"The key technology that will let us realize these capabilities is Digital Signal Processing, or DSP. Digital signal processing is a fundamental requirement for the effective utilization of bandwidth -- whether it's wireline, lightwave or radiowave. "
April 30, 1996, TE gives speech to Semi/Semantech's President's Day:
"The safest way to think about the next millennium is to picture almost every object with embedded intelligence - a little bit of semiconductor content which means a little bit of smarts.
Maybe that seems like a crazy vision to have, but think about this. Roberto Goizueta, the head of Coca-Cola, was quoted in Fortune as saying his market would be saturated when every consumer had a faucet in his home that delivered Coca-Cola. Great vision to a cola guy. As a semiconductor guy, I have pretty much the same vision - every object will contain semiconductors. And I'll bet when that Coca-Cola faucet is installed in your home, it contains a chip that regulates the flow, monitors the mix and totals up your monthly cola charges.
There are also some great examples of embedded intelligence in Negroponte's book -Being Digital. Think about an intelligent pager that takes messages, screens for content based on what it knows about your personal tastes and preferences and then prompts you with the information at an opportune time. Call it your digital butler and say good-bye to annoying beeps or vibrations in the middle of important conversations.
Think about an intelligent home. It knows what room you're in and it knows whether you're sitting, sleeping, exercising or eating. It adjusts room temperature and lighting based on your activity. It's updated with external information like weather reports, plane schedules and traffic delays. Your home automatically adjusts the setting on your alarm clock if your morning flight is delayed.
These capabilities will be commonplace because of three very significant trends.
Number one is the continuing personalization of electronics across computing, communication, and entertainment. Personal computers are just now becoming personal versus shared use in the past. Even in my case, I get irritated when my kids mess up my screen colors, or change default settings on my home PC. A PC that originally was bought for their education. Pagers and cellular phones are also becoming part of an individual's anatomy.
The second trend is digitalization. Computing long ago became digitally based. Today, telecommunications, cellular and wired, is moving rapidly to digital solutions. And consumer equipment, video and audio, are in the initial stages of conversion. While unknown to most users, this digitalization trend is significant in that for the first time, all personal electronics will be speaking a common language.
The third trend today is connectivity, brought on primarily by the surprising emergence of the Internet in the public domain and the growing wireless networks of the world.
Personalized electronics for computing, communicating, and renewing - all speaking a common language - all connected together.
I think these trends will carry us well into the next millennium and most certainly have a profound impact on the way we live, work and play. . . .
I think it's unlikely that one company will be able to dominate in all aspects. It's important to pick your spot. At TI, for example, we've chosen digital signal processing. "
May 6, 1996:
"Those, "quote", digital rules are as follows:
1.Anticipate end user needs;
2.Achieve architectural dominance in a chosen market area; 3.Establish competence in backplane design, and;
4.Compete in Asia like you never have before. . . .
I believe to be successful in the next millennium, you will need an architectural dominance, a functionally broad product portfolio to integrate around the architecture, and a common design backplane to efficiently design on a single chip. Only then will you be able to provide highly integrated optimized solutions. "
August 13, 1996:
"I'd like to turn now to digital signal processing which is the backbone of our differentiated product portfolio. Digital Signal Processing technology is the enabler of the digitization trend in electronics. And DSPs are the unique microprocessors that can handle sound, image, and control information in real time, often 10 times faster than the most powerful general purpose microprocessors.
The other products that we combine with DSPs to form a solution, such as mixed signal chips, is the total market we call digital signal processing solutions. The market has nearly doubled in the last two years. It's expected to triple over the next 4 years and reach more than $12 billion by the year 2000.
TI is the clear leader in the Digital Signal Processing Solutions market segment. This segment includes DSPs, accessory components such as mixed signal devices and application specific ICs, as well as the software tools and systems knowledge that produce a custom solution.
TI has focused on this market segment because it is growing at a double-digit rate. It also offers higher selling prices and a higher degree of profitability through proprietary, long-term customer relationships. We lead the market through the 15,000 customer relationships that we have built, many of them with market makers in the high-growth applications:modems, cellular phones, hard disc drives, telephone answering devices, satellite receivers, and video conferencing.
DSP Solutions
We've taken several actions to consolidate and strengthen our leadership position in the DSP Solutions market. In addition to our market-leading position in DSPs, we've also gained market share in mixed signal products every year for the last 4 years.
We're taking a vertical approach to market applications like hard disk drives, wireless communications and networking applications. We're also leveraging the capabilities of other parties -- both in the business arena and in universities. That leverage gives us a true competitive advantage in the research and development of new DSP technologies and applications.
We've announced two acquisitions over the past few months of companies with proven DSP expertise. First was the acquisition of Tartan, Incorporated in Pittsburgh -- a leading provider of software tools for developers of real time, embedded DSP applications. With Tartan, we effectively doubled the resources we have in place for DSP software solutions.
TI Acquisition of Ssi
Our acquisition of Silicon Systems Inc., strengthens our DSP solutions thrust and firmly establishes TI as a leading supplier of semiconductor products to the hard-disk drive and removable data storage markets. This acquisition combines TI's DSP leadership, manufacturing capacity and process technology with SSi's design capability and system expertise of analog/mixed signal integrated circuits.
This acquisition brings together the special skills and expertise of both companies and will result in more cost-effective customer solutions. It specifically meets the needs of the mass-storage industry, which requires high-volume, semiconductor technology partners to provide greater levels of density, integration and performance.
We believe that SSi has a strong market position in Japan and that this acquisition will strengthen our access to that important market. "
July 29, 1997:
"DSP Growth Parallels MPUs
We've already seen tremendous growth in DSPs.
And it follows the same pattern that microprocessors experienced early in their life cycle.
The first single-chip microprocessor was invented in 1971.
In sixteen years, the market for MPUs reached the one billion-dollar milestone.
And three years after that, the market reached two billion dollars.
TI invented the first general-purpose, programmable digital signal processor in 1982.
In just twelve years - in 1994 - the market for DSPs reached one billion dollars.
And just two years after that - in 1996 - the DSP market reached the two billion-dollar milestone.
The DSP market has actually built up more momentum in its first 15 years than the microprocessor market did in the same time period.
While the growth trend is very similar to MPUs - the DSP market is not dependent on demand from just the PC market. DSP growth is driven by very different trends.
Why Digital Signal Processors?
If we look at what is driving the demand for DSPs, three factors are largely responsible:
Number one, the need for bandwidth expansion - we're seeing this in the cellular market and in the explosive growth of networking - more bandwidth means more DSPs.
Secondly, the need for higher quality and precision control is driving the conversion to digital in electronic equipment - in areas such as digital TV, digital audio, high-density disk drives and CD ROMS.
The use of DSP results in things like the best available TV picture, better cellular connections, highest speed Internet connections, highest density disk drives, and the best quality audio available.
And third, the need to future-proof or provide seamless upgrade-ability means that equipment manufacturers are turning more and more to programmable solutions versus hard-wired solutions - again, this is where DSP shines.
DSPS Market Will Explode
In fact, we believe the market demand for DSP solutions will explode.
Since 1988, the market for digital signal processors has grown at more than 40 percent per year - to an expected $3.1 billion in 1997.
We expect continued growth - well above that of the semiconductor market for the next ten years.
We believe the market for DSPs together with related mixed signal and analog devices will reach about $50 billion dollars over the next ten years.
Current DSP Applications
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Today, DSP applications are widespread and diverse.
They include wireless communications, servo-control in hard disk drives, modems and other data communications devices, set-top boxes in imaging and media, industrial and automotive control and literally thousands of emerging applications.
As you can see from this chart, DSPs are not dependent solely on the PC market or any one single market. No one segment today represents more than 25 percent of DSP usage.
This provides multiple opportunities for growth and a relatively stable foundation for the DSP market.
Most DSPS Applications Haven't Been Invented Yet
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It's safe to say that if you look ten years out, many of the DSP applications that will be common then, haven't even been invented today.
Let me give you examples in just four areas.
The entertainment market is just now beginning to go digital. It will drive huge DSP demand in the next decade.
As the idea of television evolves from purely broadcast TV to more of a communications media with interactive programming, video games and narrow or even pointcast TV, the electronic appliance sitting in your home will change dramatically.
Every stage of the digital TV process will require DSP solutions.
In the drive to lower energy consumption, digital motor control will be critical.
In the year 2001, about 1.4 billion brushless motors will be shipped into a huge variety of applications ranging from white goods, to automotive, industrial and commercial.
High-performance motor control involving electronics is being used in only a small percentage of motors today.
In the future, DSP solutions will be commonplace in many, if not all, these motor control applications.
And eventually, those 1.4 billion motors in the year 2001 could translate into millions of DSP solutions for digital motor control.
In health care, DSP solutions can enhance sight and hearing capabilities for those with disabilities.
The algorithms to do those functions are already in development today in the military where advanced video and audio processing are part of our high-tech arsenal.
In the area of safety, there will be collision avoidance systems in cars and intelligent safety systems.
And predictive failure systems that can scan bridges and aircraft looking for anomalies that indicate developing cracks or other structural irregularities.
All of these applications are prime candidates for DSP solutions. " |
