ST, ARM challenged by TI strategic shift, says analyst

By Peter Clarke, EE Times Europe
Jan 24 2007 (7:55 AM)

LONDON — The decision by Texas Instruments Inc. to end leading-edge process development at the 45-nm manufacturing node and rely on foundries thereafter, is set to have important implications for European electronics firms, according to Didier Scemama, an analyst with ABN-Amro Bank, in a note distributed to clients.

Scemama indicated that the move by Texas Instruments highlights a sea-change occurring in the industry; one for which the likes of Infineon Technologies AG, CSR plc and Wolfson Microelectronics plc are relatively well prepared but for which older companies STMicroelectronics NV and ARM Holdings plc appear less ready.

The move by TI is clearly a strategic one, reflecting that foundries have now more or less caught up with independent device makers (IDMs) so that owning processes and manufacturing plant is ceasing to be a differentiating advantage. The analyst also wrote that the move may have been prompted by information from Nokia which may have indicated a reduced need to develop custom silicon and an increased desire to use standard chipsets.

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