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Texas Instruments' acquisition of National Semiconductor could bring about a turnaround in the fortunes of National Semiconductor in India where it has a small presence.
TI could move National Semiconductor's global workforce and work to India, say industry analysts.
On Monday, Texas Instruments (TI) made a global announcement to acquire National Semiconductor for $6.5 billion.
Globally, National Semiconductors is a large player but its India subsidiary has barely 200 people in its 14,000 sq ft facility in Bangalore.
TI, which has been in India for over 25 years, has turned around its own India centre from small beginnings to high levels of maturity and ownership and this could happen with National now.
Says Mr Chaitanya Ramalingegowda, Director - Advisory Services, Zinnov Management Consulting: “TI could move National's global workforce (especially from the biggest centre in Santa Clara, California) and work to India. Till now, National Semiconductor in India did not have to manage high-end work. But now processes such as quality assurance and sustenance of existing products could be moved to India; slowly, the India centre could get on to technical development.”
TI is set to acquire National for $25 per share in an all-cash transaction of about $6.5 billion. With this acquisition, TI becomes the third largest semiconductor player after Intel and AMD.
National Semiconductor is a specialist in making analog power management chips for a host of devices. Its other products include amplifiers, LED lighting solutions and temperature sensors. TI's expertise lies in making special chips for specific devices.
Mr Rich Templeton, TI's Chairman, President and Chief Executive Officer, said: “National's products, combined with our own, can offer customers an analog portfolio of unmatched depth and breadth. National's management team has done an outstanding job of improving margins and streamlining expenses, which upon close will increase TI's profitability and earnings per share, excluding transaction costs. The combined sales team will be 10 times larger than National's today, and the portfolio will be exposed to more customers in more markets.”
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