Texas Instruments Incorporated [NASDAQ: TXN] is an American
technology company, which designs, manufactures, tests and sells analog and
embedded semiconductors in industrial, personal electronics, automotive,
communications equipment and other markets.
It operates in two segments:
Analog and
Embedded Processing.
It is often said that the history of Texas Instruments (TI)
is very closely associated with the American electronics industry.
TI produced the world’s first silicon transistor in 1954,
and the first transistor radio the same year. It was a TI engineer Jack Kilby
who invented the first semiconductor integrated circuit in 1958, and introduced
the first single-chip microcontroller (an assembly of electronic components,
fabricated as a single unit onto one piece of silicon) in 1970, which helped
fuel the modern electronics revolution.
TI also invented the hand-held calculator in 1967. The
company, which traces its roots to Geophysical Service, a petroleum-exploration
firm founded in 1930, is based in Dallas, Texas.
Long-term investors in Texas Instruments [NASDAQ: TXN] have
reaped rich returns over the years.
TXN has been a major beneficiary of increasing automation of
factories and automobiles and the same is reflected in its ballooning stock
price.
Despite the economic wreckage caused by the pandemic, TXN
has returned more than 265 percent over the last five years, which is mainly
made up of capital gains, but also dividends. The stock gained 28% in 2020, and
is up 4.5% this year.
Texas Instruments derives a larger portion of its revenue
from manufacturers of industrial equipment, and as such, its earnings and
forecasts to a certain extent serve as a broader guide of how the economy is
performing.
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