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TI's mobile processor exit costs 1,700 jobs

OMAP platform will be refocused on embedded markets as competition rises in smartphone and tablet sectors

By CAROLINE GABRIEL

Published: 15 November, 2012

READ MORE: People/Management | Texas Instruments | Processor | M2M | Handset

As previously indicated, Texas Instruments is pulling out of the mobile app processor market, a move which will cost 1,700 jobs.

The firm has promised to support existing customers of its OMAP processor, such as Amazon, but is widely expected to sell off the venerable platform - though the official line is that the family will be refocused on embedded sectors such as automotive. It will retain positions in the smartphone and tablet in the shape of analog chips - its primary focus these days on the device side - and connectivity combo parts supporting Wi-Fi, Bluetooth and other links.


"TI...will reduce costs and focus investments in its wireless business on embedded markets with greater potential for sustainable growth. Cost reductions include the elimination of about 1,700 jobs worldwide," the firm said in its statement. It said it would focus on embedded applications with "long lifecycles" such as the industrial market.

There were greater opportunities for growth and margin there, TI executives said, and the firm also blamed the fact that "large customers are increasingly developing their own custom chips". Apple and Samsung, which control over half of the smartphone market, both rely on their own mobile processor designs.

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