TI remains committed to OMAP biz

Texas Instruments CEO Richard Templeton said the silicon provider remains committed to its OMAP processor business, even as it completes its exit from the wireless baseband business.

"I think it is a highly intriguing opportunity in terms of where we are and what our opportunity is," Templeton said during a webcast of the company's investor meeting, according to Reuters.

Templeton said TI's exit from basebands was appropriate because it did not make sense for TI to compete there. He said that TI looks critically at all its business. "If they don't make sense over the long term we'll do something different," he said.

However, he said that TI doesn't "have a public or private time frame for what we're going to do with OMAP."

In the first quarter, revenue from TI's wireless business fell 43 percent to $373 million. The company said the sharp decline came as it entered the final phase of its exit from baseband products, which were less than 3 percent of the company's total sales in the quarter.

However, TI said it is expanding the reach of its wireless segment into multiple markets and experiencing a wide range of design wins. The company said overall it is seeing orders pick back up again.

Qualcomm (NASDAQ:QCOM) captured around half of all the revenue in the surging smartphone application processor market in 2011, according to a report earlier this year from research firm Strategy Analytics. The research firm noted that the smartphone application processor market boomed 70 percent to $7.9 billion in 2011. According to the report, Qualcomm, Samsung, TI, Marvell and Broadcom were the world's five largest vendors for smartphone applications processors in terms of revenue share last year. For the first time, Qualcomm, which banks on its line of Snapdragon chipsets to drive revenue growth in the application processor market, surpassed TI in terms of units sold on an annual basis, according to Strategy Analytics.

However, Qualcomm is now facing its own issues. Qualcomm said in April that its operating expenses could increase as it works to meet customer demand.

For more:
- see this Reuters article

Related Articles:
TI forecasts weak Q1 on falling wireless chip sales
Intel lands ZTE deal, outlines product roadmap through 2014
Report: Qualcomm passes TI to dominate booming smartphone processor market
ST-Ericsson, TI hit by Nokia's declining Symbian's sales
Broadcom to increase smartphone presence in 2012

Suggested Articles

The C-Band Alliance (CBA) now says the U.S. could see billions of dollars going to the U.S. Treasury if its auction of C-band spectrum gets approved.

T-Mobile appears to be working to gain favor in NY, promising more jobs in new tax revenue from a second new customer experience center in the state.

Google announced it’s bringing RCS chat services to Android users in the U.S.