Texas Instruments might be up to something big

big-texanTexas Instruments is about to buy something big.

The outfit has a market capitalisation of $56 billion, and watched as Intel, Avago and NXP Semiconductors consolidated and made acquisitions.

TI was talks to acquire Maxim last year which fell through because the outfit did not want to sell. It also kicked the wheels of Freescale before it was bought by NXP in March for $11.8 billion.

The feeling is that if Texas Instruments chief executive Rich Templeton doesn’t move fast, there will not be any companies worth buying left.

TI is expected to want to buy up analogue chip makers and the right deal could boost TI’s operating margins and profits by increasing the utilisation rates in TI’s 21 fabrication plants in nine countries.

On the shopping list are Maxim, Analog Devices, Linear Technology, Microchip Technology, Intersil and Atmel.

TI’s chief financial officer Kevin March said on a conference call with analysts last autumn that TI would prefer to buy an analogue company that sells into the industrial and automotive markets, or one that provides catalogue parts which are non-custom silicon parts.