ion as well as concentration. The company raised its target for annual operating profit margin to 25 percent for the year 2000 recently. The company expects sales of the DSP and analog chips to continue to grow faster than the overall market. Since 1996, TI’s market value has grown by a factor of 10. (Wall Street Journal, March 3, 2000)Current CEO T.J. Engibous set forth to refocus the corporation in 1996. Engibous initiated the sell of the custom manufacturing business, the notebook computer business, the defense electronics business as well as the software business. During the past two years, TI has been on a buying spree, acquiring more than fifteen other companies. These acquisitions have been horizontal in nature focusing on companies that have the ability to help TI strengthen its position in the semiconductor market. TI is expanding its knowledge base of next-generation broadband network technologies through these acquisitions. TI is also acquiring companies that have developed new technologies such as Voice Over Packaging which allows service providers to offer bundled packages of voice, video and data services over a single broadband line. (TI Annual Report, 1999) TI plans on diversifying into emerging end equipment markets and accelerating DSP applications. Texas Instruments has spent the last several years working to identify new opportunities in the semiconductor industry. The company’s goal has been to build the technical expertise needed to succeed in these attractive new markets.A semiconductor factory in Japan was recently sold to Seiko Epson Corporation. The factory, located in Hatogaya, Japan, had been scheduled to be closed by the end of 2000. The 30-year old plant no longer fit into TI’s overall expansion plan according to Yoko Koizumi, a TI spokeswoman. (Bloomberg Newswire, June 1, 2000) The sale of this plant demonstrates th company’s commitment to upgrading its semiconduct...
