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TI Highlights its Continued Success in the Residential Gateway Market

TI's Industry-leading AR7 is the Most Recognized DSL CPE Solution Worldwide

Aug 22, 2005

DALLAS (August 22, 2005) – Texas Instruments Incorporated (TI) (NYSE: TXN) today announced recent successes in the growing residential gateway (RG) market. By the end of the third quarter, TI expects to have shipped over 100 million DSL CPE and CO ports and 30 million ports of its flagship RG platform, TI’s AR7 modem-on-chip, since it was deployed in 2003. Leading manufacturers such as AVM, Actiontec, Arcadyan, Aztech Systems Ltd., NETGEAR, Netopia, Siemens and Westell incorporate TI’s AR7 family delivering superior performance. This extensive installed base has established TI as the leader in the rapidly emerging RG market.

“Traditionally consumers have relied on simple, Ethernet-based modems for their computing needs, however the market is experiencing increased demand for more integrated, sophisticated residential gateways incorporating wireless, voice and video functionality,” said Dennis Rauschmayer, director of marketing for TI’s Residential Gateway and Embedded Systems business unit. “Based on this trend, we anticipate shipments of RGs to grow rapidly over the next three to five years. We expect our own shipments of gateways with wireless and voice functionality to increase significantly this year.”

“The growth of these integrated RGs provides opportunities for additional semiconductor content,” said Joyce Putscher with analyst firm In-Stat. “TI is in a unique position to meet this need through its comprehensive portfolio of solutions that span the broadband, wireless and consumer electronics space. By converging these technologies, TI allows service providers to offer new capabilities to consumers, grow their subscriber bases and increase revenues into the future.”

TI’s Flagship RG Platform

TI´s RG designs are based on the market-leading AR7 modem-on-chip that allows for future system-level integration containing common hardware and software architectures. The designs integrate key technologies from TI´s comprehensive broadband portfolio including wireless LAN (WLAN) and Voice over IP (VoIP). The AR7W router integrates TI’s IEEE 802.11 b/g solution and the AR7VW voice gateway provides VoIP over DSL. In addition, the AR7VWi gateway combines DSL, 802.11 b/g wireless home networking and VoIP into a single platform. These ADSL2+ RG solutions allow manufacturers to develop cost-optimized, differentiated gateways that are operator quality and deployment ready due to extensive interoperability testing.

TI is committed to delivering innovative solutions as part of its expanding residential gateway portfolio, as its AR7 solution and extensions for wireless and voice are available in volume production today. TI also plans to unveil additional AR7 family extensions later this year, along with its next generation residential gateway platform to address video.

Texas Instruments Broadband Solutions

For OEMs developing broadband communications solutions, TI's advanced signal processing-based silicon and software platforms deliver the optimal performance, lower power consumption, and system-level integration required to rapidly deploy differentiated next-generation products for cable modems, digital subscriber line (xDSL) modems, integrated access devices (IADs), VoIP gateways, carrier infrastructure, and home and office wireless networking. See www.ti.com/broadband.