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Texas Instruments Projects Continued Momentum for Broadband Business in 2004

Complete Broadband Portfolio to Enable Unmatched Integration and Product Innovations to Drive Consumer Broadband Markets

Apr 21, 2004

DALLAS (April, 21 2004) - Texas Instruments Incorporated (TI) (NYSE:TXN), a leading provider of software and silicon for broadband communications equipment worldwide, today presented an update on the success of its Broadband Communications Group, which includes products based on cable modem, DSL, WLAN and Voice over Internet Protocol (VoIP) technologies. In 2003, TI was the only company that supported each of these broadband platforms and held #1 or #2 market position in each segment.
"We see 2004 as TI's year to expand the broadband market with products that take broadband beyond high speed internet access," said Joseph Crupi, vice president and general manager, Texas Instruments Broadband Communications Group. "With broadband growth continuing around the world consumers are interested in using broadband communications and entertainment applications with mobility being a key feature."
Crupi added, "In anticipation of this demand, we have built core broadband technology expertise since 1997 and through this experience, are able to provide unparalleled integration and convergence not only in broadband but across wireless and consumer electronics technologies. The result is that our customers are able to add flexibility and functionality to their product lines to meet operator needs and users enjoy easy access to broadband anytime, anywhere."
VoIP has already been characterized by many as one of the most significant technology trends for 2004 and is quickly proving its ability to transform the broadband industry. The worldwide market for enterprise IP telephony grew at a 50 percent rate just a year ago, while residential VoIP growth is projected to take off in the next twelve months(1). With its latest innovations, Texas Instruments is driving today's voice technology as well as applying it across all broadband platforms to develop tomorrow's products. TI's expertise in each major broadband technology and its relationships with companies such as Cisco Systems, Sonus Networks and Siemens ICN have been key to its leadership.

Core Broadband Expertise by the Numbers

  • Crossing platforms with VoIP - TI recently announced shipments of over 50 million VoIP ports, roughly 80% of the total VoIP integrated circuit (IC) market comprised of IP phone, enterprise gateway and infrastructure (carrier class) segments. TI expects to benefit significantly over the next three years as total VoIP IC market revenue is projected to rise from $54.9 million in 2002, to $141.1 million in 2007(2).
  • Increasing speed with WLAN - TI shipped 14 million 802.11 ports to customers worldwide in 2003, confirming TI´s position as a leading Wi-Fi® silicon and software provider to retail, broadband residential gateway (RG), PC and mobile equipment manufacturers around the world. WANDA, TI´s tri-band PDA concept design introduced in 2003, provided OEMs with the industry´s first convergence of wireless networking and cellular communications in mobile devices. 
  • Pioneering DSL - Texas Instruments has been in the DSL business since the inception of DSL standards in the mid-1990s. In 2003, TI continued its technology leadership with the introduction of AR7, the industry´s first DSL modem-on-a-chip, and recently added WLAN and VoIP capabilities with the AR7VWi. The company shipped 24 million of the 64 million ports total for the industry in 2003 compared to 19 million total ports from 2000-2002. The overall market is expected to reach nearly $700 million this year(3).
  • Powering a complete cable modem portfolio - TI currently holds a #2 overall market position in cable modems providing complete silicon and software solutions for a portfolio of data, WLAN-enabled residential gateways, voice-enabled and embedded cable modems(4). TI´s voice-enabled cable modem technology is powering many of the modems included in the current cable operators trials and market rollouts. 

What´s Next

In addition to providing products that integrate multiple broadband platforms, TI is already moving to the next stage of broadband evolution - convergence of broadband, wireless and consumer electronics. Through its combined leadership in wireless and broadband, TI will offer consumers unparalleled mobility and access to broadband. Tomorrow´s devices based on TI technology will enable full convergence and functionality for access to content anytime and anywhere. 


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 (DSL) modems, integrated access devices (IADs), Voice over Internet Protocol (VoIP) gateways, carrier infrastructure, and home and office wireless networking. See www.ti.com/broadband.


Notes

  1. Source: Synergy Research, February 2003
  2. Source: In-Stat/MDR, November 2003
  3. Source: IDC, April 2004
  4. Source: IDC, April 2004 All revenue figures are listed in US dollars.