{"id":11546,"date":"2022-11-22T23:56:00","date_gmt":"2022-11-22T15:56:00","guid":{"rendered":"https:\/\/www.granitefirm.com\/blog\/us\/?p=11546"},"modified":"2025-07-09T09:38:58","modified_gmt":"2025-07-09T01:38:58","slug":"texas-instruments-bio","status":"publish","type":"post","link":"https:\/\/www.granitefirm.com\/blog\/us\/2022\/11\/22\/texas-instruments-bio\/","title":{"rendered":"How does Texas Instruments make money? Amazing long term capital reward and company net profit margin!"},"content":{"rendered":"\n<p>Texas Instruments (aka TI, ticker: TXN) is an extremely important company among US listed companies, in many ways it is.<\/p>\n\n\n\n<p>Moreover, this company is actually one of the inventors of the semiconductors we use now. This company is one of the few large technology companies not located in Silicon Valley, but it has a great influence on the development of the technology industry in the United States. It has been so until now. , and it should be in the future. For this part, please refer to the explanation of my other article &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/09\/the-power-law\/\" target=\"_blank\" rel=\"noreferrer noopener\">The Power Law<\/a>&#8220;.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #ffffff;color:#ffffff\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #ffffff;color:#ffffff\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/11\/22\/texas-instruments-bio\/#Texas_Instruments_discussion_in_my_books\" >Texas Instruments discussion in my books<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/11\/22\/texas-instruments-bio\/#Company_introduction\" >Company introduction<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/11\/22\/texas-instruments-bio\/#Company_profile\" >Company profile<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/11\/22\/texas-instruments-bio\/#The_great_achievements_of_Texas_Instruments\" >The great achievements of Texas Instruments<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/11\/22\/texas-instruments-bio\/#Nurturing_many_semiconductor_talents\" >Nurturing many semiconductor talents<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/11\/22\/texas-instruments-bio\/#Operating_Status\" >Operating Status<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/11\/22\/texas-instruments-bio\/#By_product_category\" >By product category<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/11\/22\/texas-instruments-bio\/#By_market\" >By market<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/11\/22\/texas-instruments-bio\/#Economic_Competitives\" >Economic Competitives<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/11\/22\/texas-instruments-bio\/#Extremely_diversified_business\" >Extremely diversified business<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/11\/22\/texas-instruments-bio\/#Products_focused_on_non-end_consumers\" >Products focused on non-end consumers<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/11\/22\/texas-instruments-bio\/#Amazing_net_profit_margin\" >Amazing net profit margin<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/11\/22\/texas-instruments-bio\/#Design_and_manufacture_chip_in-house\" >Design and manufacture chip in-house<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/11\/22\/texas-instruments-bio\/#Texas_Instruments_Moats\" >Texas Instruments&#8217; Moats<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/11\/22\/texas-instruments-bio\/#Main_competitors\" >Main competitors<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/11\/22\/texas-instruments-bio\/#Analog_chips\" >Analog chips<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/11\/22\/texas-instruments-bio\/#Auto_semiconductors\" >Auto semiconductors<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/11\/22\/texas-instruments-bio\/#Texas_Instruments_long-term_capital_returns\" >Texas Instruments&#8217; long-term capital returns<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/11\/22\/texas-instruments-bio\/#Stock_performance\" >Stock performance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/11\/22\/texas-instruments-bio\/#Stock_splits_and_dividends\" >Stock splits and dividends<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/11\/22\/texas-instruments-bio\/#Related_books\" >Related books<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/11\/22\/texas-instruments-bio\/#Related_articles\" >Related articles<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Texas_Instruments_discussion_in_my_books\"><\/span>Texas Instruments discussion in my books<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>I have discussed the company Texas Instruments,  relative industry or topics, in my latest two books; including:<\/p>\n\n\n\n<p>In my book &#8220;<a href=\"https:\/\/www.books.com.tw\/products\/0010889106?sloc=main\" target=\"_blank\" rel=\"noreferrer noopener\">The Rules of Super Growth Stocks Investing<\/a>&#8220;:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Sections 2-4, pp. 139-141, discussion on business efficiency <\/li>\n\n\n\n<li>Sections 3-7, p. 231, discussion on supply chains<\/li>\n<\/ul>\n\n\n\n<p>In my book &#8220;<a href=\"https:\/\/www.books.com.tw\/products\/0010935641?sloc=main\" target=\"_blank\" rel=\"noreferrer noopener\">The Rules of 10 Baggers<\/a>&#8220;:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Section 3-2, pp. 124-128, discussion on the semiconductor industry<\/li>\n\n\n\n<li>Section 6-7, page 323, discussion on capital operations of listed companies<\/li>\n\n\n\n<li>Appendix 3, page 394, discussion of Nifty 50<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Company_introduction\"><\/span>Company introduction<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Company_profile\"><\/span>Company profile<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Take Texas Instruments as an example; this company was founded earlier than Intel (ticker: INTC), for Intel, I suggest you refer to my previous blog post &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/10\/30\/how-does-intel-make-money-and-the-benefits-to-invest-in-it\/\" target=\"_blank\" rel=\"noreferrer noopener\">How Does Intel Make Money? And the Benefits of Investing in It<\/a>&#8220;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_great_achievements_of_Texas_Instruments\"><\/span>The great achievements of Texas Instruments<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The achievements of Texas Instruments include the following notable ones:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/www.chiphistory.org\/integrated-circuit-invention-history-1958\" target=\"_blank\" rel=\"noreferrer noopener\">In 1958, Jack Kilby of Texas Instruments invented the integrated circuit<\/a>, opening the way to modern semiconductors.<\/li>\n\n\n\n<li><a href=\"https:\/\/sites.google.com\/site\/transistorhistory\/Home\/us-semiconductor-manufacturers\/ti\" target=\"_blank\" rel=\"noreferrer noopener\">Manufactured the world&#8217;s first commercial silicon transistor<\/a>, the ancestor of modern silicon wafers.<\/li>\n\n\n\n<li>The world&#8217;s largest manufacturer of digital signal processors (DSPs) and analog semiconductor components.<\/li>\n\n\n\n<li><a href=\"https:\/\/ethw.org\/T.I._Unveils_Transistor_Radio#:~:text=On%2018%20October%201954%2C%20in,of%20portable%20electronics%20had%20begun.\" target=\"_blank\" rel=\"noopener\">In 1954, Texas Instruments produced the world&#8217;s first transistor radio<\/a>.<\/li>\n\n\n\n<li><a href=\"https:\/\/www.pbs.org\/transistor\/background1\/events\/calc.html#:~:text=They%20wanted%20a%20flashy%20product,be%20held%20in%20your%20hand.\" target=\"_blank\" rel=\"noreferrer noopener\">In 1967, Texas Instruments invented the world&#8217;s first portable computer<\/a>.<\/li>\n\n\n\n<li><a href=\"https:\/\/investor.ti.com\/news-releases\/news-release-details\/texas-instruments-completes-acquisition-national-semiconductor\" target=\"_blank\" rel=\"noreferrer noopener\">The acquisition of National Semiconductor in 2011<\/a> cemented the global analog semiconductor throne.<\/li>\n\n\n\n<li>Texas Instruments was once the second-largest chip supplier for mobile phones, after Qualcomm (NYSE: QCOM).<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Nurturing_many_semiconductor_talents\"><\/span>Nurturing many semiconductor talents<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Because of its long history, Texas Instruments has also trained countless talents for the global semiconductor industry, including Moris Chang, the founder of TSMC.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Operating_Status\"><\/span><strong>Operating Status<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"By_product_category\"><\/span>By product category<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><\/td><td>Business Unit<\/td><td>2021 Revenue ($ million) and Growth Rate<\/td><td>Account for Total Revenue<\/td><\/tr><tr><td>Total revenue<\/td><td><\/td><td>18,344 +26.85%<\/td><td>100%<\/td><\/tr><tr><td><\/td><td>Analog<\/td><td>14,050+29.06%<\/td><td>76.59%<\/td><\/tr><tr><td><\/td><td>Embedded<\/td><td>3,049 +18.64%<\/td><td>16.62%<\/td><\/tr><tr><td><\/td><td>Others<\/td><td>1,245 +23.88%<\/td><td>6.79%<\/td><\/tr><tr><td>Gross income<\/td><td><\/td><td>12,376 +33.52%<\/td><td><\/td><\/tr><tr><td>Operating income<\/td><td><\/td><td>9,022 +52.27%<\/td><td><\/td><\/tr><tr><td>Net income<\/td><td><\/td><td>7,769 +38.86%<\/td><td><\/td><\/tr><tr><td>Gross margin<\/td><td><\/td><td>67.47%<\/td><td><\/td><\/tr><tr><td>Operating margin<\/td><td><\/td><td>44.18%<\/td><td><\/td><\/tr><tr><td>Net margin<\/td><td><\/td><td>42.35%<\/td><td><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"By_market\"><\/span>By market<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td>Market<\/td><td>Account for total revenue<\/td><\/tr><tr><td>Automotive<\/td><td>37%<\/td><\/tr><tr><td>Industrial<\/td><td>20%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>About 20% of Texas Instruments&#8217; revenue comes from China. It&#8217;s a high figure.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Economic_Competitives\"><\/span>Economic Competitives<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Extremely_diversified_business\"><\/span>Extremely diversified business<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The chips produced by Texas Instruments are widely used, ranging from washing machines to satellites. It was also the second largest chip supplier for mobile phones; it is the most diversified company in the semiconductor industry and can be said to be the most representative semiconductor company in the United States. You heard right, in the semiconductor industry, Texas Instruments is more influential and representative than Intel.<\/p>\n\n\n\n<p>Texas Instruments has the largest customer list in the semiconductor industry, making the company&#8217;s forecast a bellwether for semiconductor industry demand.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Products_focused_on_non-end_consumers\"><\/span>Products focused on non-end consumers<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Texas Instruments is the largest manufacturer of analog and embedded processing chip used in products required by various commercial users including factory equipment, industrial, automotive, and space hardware. Therefore, Texas Instruments has little visibility in the eyes of general end consumers.<\/p>\n\n\n\n<p>This feature has two major effects:<\/p>\n\n\n\n<p>First of all, the semiconductor industry will always experience big price fluctuations after business cycles and excess product, but because its chips have a long life and lasting value, as compared to peers. This is very different from digital semiconductor chip companies such as microprocessors (most of the better-known chip companies fall into this category), where TI&#8217;s products take years to become obsolete, which means that when demand for chips is weak, The accumulated inventory is not as dangerous as other chip makers.<\/p>\n\n\n\n<p>TI&#8217;s products generally have lower production process requirements than Intel processors or other semiconductor players. This intense focus on these types of chips has made Texas Instruments one of the most profitable companies in the semiconductor industry, giving it a longstanding ability to spend its cash on dividends and share buybacks.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Amazing_net_profit_margin\"><\/span>Amazing net profit margin<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Note that Texas Instruments&#8217; net profit margin is as high as 42.35%! It is higher than TSMC (ticker: TSM), and it is higher than software giant Microsoft (ticker: MSFT). I have listed this on page 141 of 2-4 in my book &#8220;The Rules of Super Growth Stocks Investing&#8221;.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Design_and_manufacture_chip_in-house\"><\/span>Design and manufacture chip in-house<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>More than 80% of Texas Instruments&#8217; chip products are produced in its own fabs, and it has not followed the industry and switched to outside OEMs for a long time. Not only that, it produces its own chips, and it is very profitable. It has always been the semiconductor company with the highest profit margin in the world, and even TSMC is not comparable to it. Please note that Texas Instruments is a semiconductor foundry with many chip products. It&#8217;s really not easy.<\/p>\n\n\n\n<p>Texas Instruments is the most typical semiconductor manufacturing company. It is not a network company, let alone a software company. Not only does Texas Instruments design its own semiconductors, it is one of the few companies that still manufactures its own semiconductors today. See my other article, &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/05\/07\/semiconductor-investment\/\" target=\"_blank\" rel=\"noreferrer noopener\">6 Common Semiconductor Investment Myths<\/a>.&#8221; The point is that it can achieve a higher net profit margin than TSMC, which shows how good this company is. Why do I say that? The counter-example is Intel (NYSE: INTC), just think about Intel current status, you should understand.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Texas_Instruments_Moats\"><\/span><strong>Texas Instruments&#8217; Moats<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Until now, it is still an excellent semiconductor leader in analog, digital signal processing (DSP), and embedded system field; the corporate moat is clear.<\/p>\n\n\n\n<p>Especially in the automotive industry, or the industrial field, they are long-term major customers of Texas Instruments. This is mainly due to the high conversion costs of non-digital chips such as analog, digital signal processing, and embedded systems. That is, a higher moat. The reason is that the cost of conversion is too high, and it is almost impossible to change to a competitor\u2019s product.<\/p>\n\n\n\n<p>According to the McClean report of IC Insights, Texas Instruments ranks number one among the top ten analog fabs in the world, far ahead of its peers, with a market share of 18%, almost twice that of the second-ranked Analog Devices.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"278\" height=\"72\" src=\"https:\/\/www.granitefirm.com\/blog\/us\/wp-content\/uploads\/sites\/2\/2022\/11\/t-1600x1200-2.jpg\" alt=\"Texas Instruments\" class=\"wp-image-15614\"\/><figcaption class=\"wp-element-caption\">credit: Texas Instruments<\/figcaption><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Main_competitors\"><\/span>Main competitors<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Analog_chips\"><\/span>Analog chips<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>Its main competitors in the field of analog chips are Analog Devices (ticker: ADI) and Maxim (ticker: MXIM, which was acquired by Analog Devices in 2020).<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Auto_semiconductors\"><\/span>Auto semiconductors<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>According to SC-IQ, in terms of automotive semiconductors, Infineon (ticker: IFNNY) will rank first in the entire automotive semiconductor market in 2021, accounting for 8.3% of the market, with sales of approximately US$5.725 billion. Ranked second is NXP (ticker: NXPI), with a market share of 8% and sales of 5.493 billion US dollars. Renesas Electronics (ticker: RNECY) ranked third, with sales of 4.21 billion US dollars, accounting for 6.1% of the market. Texas Instruments ranked fourth, accounting for 5.6% of the market, with sales of US$3.852 billion, accounting for 21% of the company&#8217;s total sales. STMicroelectronics (ticker: STM) is fifth, with sales of 3.65 billion US dollars, accounting for 5.3% of the market.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Texas_Instruments_long-term_capital_returns\"><\/span><strong>Texas Instruments&#8217; long-term <\/strong>capital returns<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Stock_performance\"><\/span><strong>Stock performance<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Even if you can\u2019t be like Philip Fisher bought it decades ago (because you may not have been born), that&#8217;s okay. If you only bought it ten years ago, the return rate is still as high as 457.10%. Please see my previous post &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/08\/12\/good-companies-are-rare-two-or-three-will-make-you-very-rich-take-texas-instruments-as-an-example\/\" target=\"_blank\" rel=\"noreferrer noopener\">Great companies are rare, two or three will make you very rich<\/a>&#8220;.<\/p>\n\n\n\n<p>Texas Instruments is also:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>A US-listed company with a market capitalization higher than 98.68% of listing companies.<\/li>\n\n\n\n<li>Has been listed for longer than 92.76% of listing companies.<\/li>\n\n\n\n<li>A typical representative of successful US stock companies.<\/li>\n<\/ul>\n\n\n\n<p>The picture below is the stock price trend chart of Texas Instruments displayed by macrotrends.net so far. Don\u2019t forget that it has gone through 8 stock splits.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"512\" height=\"296\" src=\"https:\/\/www.granitefirm.com\/blog\/us\/wp-content\/uploads\/sites\/2\/2021\/09\/1.jpg\" alt=\"\" class=\"wp-image-90\" srcset=\"https:\/\/www.granitefirm.com\/blog\/us\/wp-content\/uploads\/sites\/2\/2021\/09\/1.jpg 512w, https:\/\/www.granitefirm.com\/blog\/us\/wp-content\/uploads\/sites\/2\/2021\/09\/1-300x173.jpg 300w\" sizes=\"auto, (max-width: 512px) 85vw, 512px\" \/><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Stock_splits_and_dividends\"><\/span>Stock splits and dividends<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Since Texas Instruments went public in 1953:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>It has undergone 8 stock splits (6 splits of 1 share for 2 shares, 1 split of 3 shares for 1 share, and 1 split of 4 shares for 5 stocks). <\/li>\n\n\n\n<li>The current dividend yield of Texas Instruments is as high as 2.11% (2.11% is now considered a very high dividend yield in US stocks). <\/li>\n\n\n\n<li>As far as I know, it is the only technology stock pays dividends for more than 50 consecutive years.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Related_books\"><\/span>Related books<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>&#8220;The Chip: How Two Americans Invented the Microchip and Launched a Revolution&#8221; by T. R. Reid<\/li>\n\n\n\n<li> &#8220;Texas Instruments \u300a\u5fb7\u5dde\u5100\u5668\u300b&#8221;, by \u6eab\u82f1\u8d85 (Wen Yingchao)<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Related_articles\"><\/span>Related articles<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/07\/08\/astera-labs-make-money\/\">How Astera Labs, AI high-speed transmission expert, make money? <\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/11\/30\/tsmc-negative-corp-culture\/\" target=\"_blank\" rel=\"noreferrer noopener\">TSMC negative toxic corp culture and management style are detrimental to its future and growth<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/17\/how-on-make-money\/\">How does ON Semiconductor make money? Experts in power and analog signal processing and sensor<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/03\/microchip-microcontrollers\/\">How does Microchip, a specialist in microcontrollers, memory and analogs, make money?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/06\/08\/monolithic-power-systems\/\" target=\"_blank\" rel=\"noreferrer noopener\">Monolithic Power Systems, a new force in power management expertise<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/04\/10\/four-chip-companies\/#google_vignette\" target=\"_blank\" rel=\"noreferrer noopener\">Four chip companies account for one-third of S&amp;P 500 gains so far this year<\/a><\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/04\/06\/artificial-intelligence-listed-companies\/\" target=\"_blank\" rel=\"noreferrer noopener\">Top five lucrative artificial lucrative intelligence listed companies<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/01\/09\/tsmc-valuation\/\">Why is TSMC valuation much lower than US peers?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/04\/01\/tsmc-dcf-value\/\">What&#8217;s TSMC DCF intrinsic value?How to calculate it quickly with a free tool?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/10\/01\/how-many-fab-does-tsmc-have\/\" target=\"_blank\" rel=\"noreferrer noopener\">How many fabs and houses does TSMC have currently and in the future?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/05\/13\/yield-rate-comparison\/\" target=\"_blank\" rel=\"noreferrer noopener\">Yield rate comparison of SMIC, Rapidus, TSMC, Samsung, Intel&#8217;s advanced process<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/04\/29\/cost-of-chip-foundry\/\">The TSMC cost, sell price, and R&amp;D cost of chip foundry<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/01\/15\/asml-who-really-caught-tsmcs-neck\/\" target=\"_blank\" rel=\"noreferrer noopener\">ASML, who dominate TSMC\u2019s fate<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/12\/28\/tsmc-process-roadmap\/\" target=\"_blank\" rel=\"noreferrer noopener\">Comparison of SMIC, Rapidus, TSMC, Intel, and Samsung\u2019s new process roadmaps for future chips<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/07\/30\/two-long-term-threats-to-tsmc\/\" target=\"_blank\" rel=\"noreferrer noopener\">Two long-term threats to TSMC: US and SMIC<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/06\/30\/tsmcs-profit-margin\/\" target=\"_blank\" rel=\"noreferrer noopener\">Why is TSMC\u2019s profit margin much greater than competitors?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/13\/how-does-tsmc-make-money\/\" target=\"_blank\" rel=\"noreferrer noopener\">How does TSMC make money?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/11\/02\/zyvex\/\" target=\"_blank\" rel=\"noreferrer noopener\">Zyvex and sub-nanometer semiconductor processes, will Zyvex threat TSMC?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/01\/28\/tsmc-serious-crises\/\">TSMC gets emerging&nbsp;and serious challenges<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/06\/24\/nvidia-changes-gaming-rules\/\" target=\"_blank\" rel=\"noreferrer noopener\">How does nVidia make money, Nvidia is changing the gaming rules<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/12\/11\/nvidias-monopoly\/\" target=\"_blank\" rel=\"noreferrer noopener\">The reasons for Nvidia\u2019s monopoly and the challenges it faces<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/01\/29\/arm-acquired-by-nvidia\/\">Why nVidia failed to acquire ARM?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/07\/02\/revisiting-nvidia\/\">Revisiting Nvidia: The Absolute Leader in Artificial Intelligence, Data Center, and Graphics<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/05\/25\/will-intel-go-bankrupt\/\" target=\"_blank\" rel=\"noreferrer noopener\">Will Intel go bankrupt?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/10\/30\/how-does-intel-make-money-and-the-benefits-to-invest-in-it\/\">How does Intel make money? and the benefits to invest in it<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/11\/05\/intels-current-difficult-dilemma\/\">Intel&#8217;s current difficult dilemma<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/25\/how-does-micron-make-money\/\" target=\"_blank\" rel=\"noreferrer noopener\">How does Micron make money? What investors should know?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/11\/22\/texas-instruments-bio\/\" target=\"_blank\" rel=\"noreferrer noopener\">How does Texas Instruments make money? Amazing long term capital reward and company net profit margin!<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/04\/22\/amd-make-money\/\" target=\"_blank\" rel=\"noreferrer noopener\">How AMD makes money? A rare case of turning defeat into victory<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/02\/05\/amd-jaw-dropping\/\" target=\"_blank\" rel=\"noreferrer noopener\">Why is AMD\u2019s performance so jaw-dropping?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/05\/01\/qualcomm-diversifies\/\" target=\"_blank\" rel=\"noreferrer noopener\">Qualcomm diversifies success, no nonger highly dependend on phone<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/01\/29\/how-arm-make-money\/\" target=\"_blank\" rel=\"noreferrer noopener\">How does the ubiquitous Arm make money?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/07\/23\/significant-changes-in-broadcoms-business-approach\/\" target=\"_blank\" rel=\"noreferrer noopener\">Significant changes in Broadcom\u2019s business approach<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/03\/04\/data-center-a-rapidly-growing-semiconductor-field\/\">Data center, a rapidly growing semiconductor field<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/04\/18\/applied-materials\/\" target=\"_blank\" rel=\"noreferrer noopener\">How does Applied Materials, lord of semiconductor equipment, make money?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/12\/lam-research-chip-equipment\/\" target=\"_blank\" rel=\"noreferrer noopener\">How does Lam Research, top chip equipment player, make money?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/09\/25\/the-lucrative-semiconductor-industry\/\" target=\"_blank\" rel=\"noreferrer noopener\">The lucrative semiconductor supply chain<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/01\/25\/global-semiconductor-chip-market-in-detail\/\" target=\"_blank\" rel=\"noreferrer noopener\">Global semiconductor chip market in detail, big dominators and markets<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/05\/07\/semiconductor-investment\/\" target=\"_blank\" rel=\"noreferrer noopener\">6 common wrong semiconductor investment myths<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/09\/23\/3rd-gen-semiconductor\/\" target=\"_blank\" rel=\"noreferrer noopener\">Gen 3 semiconductor<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/06\/14\/eda-synopsys-cadence-mentor\/\">Three EDA oligopoly vendors: Synopsys, Cadence, and Siemens&#8217;s Mentor Graphics<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/01\/22\/how-cadence-make-money\/\" target=\"_blank\" rel=\"noreferrer noopener\">How does, the EDA oligopoly, Cadence make money?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/12\/22\/how-synopsis-make-money\/\" target=\"_blank\" rel=\"noreferrer noopener\">How does Synopsis, the EDA oligopoly, make money?<\/a>&#8220;<\/li>\n<\/ul>\n\n\n\n<p><em><strong>Disclaimer<\/strong><\/em><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><em>The content of this site is the author\u2019s personal opinions and is for reference only. I am not responsible for the correctness, opinions, and immediacy of the content and information of the article. Readers must make their own judgments.<\/em><\/li>\n\n\n\n<li><em>I shall not be liable for any damages or other legal liabilities for the direct or indirect losses caused by the readers&#8217; direct or indirect reliance on and reference to the information on this site, or all the responsibilities arising therefrom, as a result of any investment behavior.<\/em><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Take Texas Instruments (aka TI, ticker: TXN) as an example; this company was founded earlier than Intel (ticker: INTC), for Intel, I suggest you refer to my previous blog post &#8220;How Does Intel Make Money? And the Benefits of Investing in It&#8221;<\/p>\n","protected":false},"author":1,"featured_media":15614,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[110,163,35,176,165,28],"tags":[39,416,41,3,415,209,708,719,260,38],"class_list":["post-11546","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-semiconductor","category-dividend","category-long-term-investing","category-net-margin","category-stock-split","category-us-stock-market","tag-adi","tag-ifnny","tag-intc","tag-msft","tag-nxpi","tag-qcom","tag-rnecy","tag-stm","tag-tsm","tag-txn"],"_links":{"self":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/11546","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/comments?post=11546"}],"version-history":[{"count":43,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/11546\/revisions"}],"predecessor-version":[{"id":37307,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/11546\/revisions\/37307"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/media\/15614"}],"wp:attachment":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/media?parent=11546"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/categories?post=11546"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/tags?post=11546"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}