TI winds down mobile processors

Texas Instruments is giving up on making mobile processor chips and will concentrate on systems on chip tech instead.

In a statement the company said that it was pointless carrying on making mobile processors for tablets and smartphones. The money is in making chips for cars and home appliances.

Meanwhile, according to Dallas News, TI said that it will cut nearly five percent of its workforce, or 1,700 jobs.

TI can’t compete against rival Qualcomm and many smartphone makers are starting to look at making their own chips, based around ARM technology, instead of buying them from suppliers like TI.

TI wants to sell its OMAP processors in markets that require less investment, like industrial clients such as car manufacturers.

It is expected to continue selling existing tablet and phone processors for products like Amazon‘s Kindle tablets for as long as demand remains, but to stop development.

The Kindle runs on the OMAP 4 and next year’s Kindle will probably run OMAP 5.

Amazon has been rumoured to be in talks with TI to buy the mobile part of OMAP.

TI said it will cost $325 million to make the job cuts and other cost reduction measures, most of which will be accounted for in the current quarter.

However it expects to save $450 million by the end of 2013 from the action.