Texas Instruments Boston Consulting Group Matrix

Gallium Nitride (GaN) power devices represent a significant growth opportunity for Texas Instruments, fitting into the Stars quadrant of the BCG Matrix. The GaN power device market is projected to expand at a remarkable 49% compound annual growth rate (CAGR) from 2023 to 2030, with an estimated market value of $4.376 billion by the end of that period.

Texas Instruments is strategically investing in GaN technology, focusing on its application in automotive and industrial sectors, especially within the mid-to-low voltage segments. This focus positions TI to capitalize on GaN's advantages, including its potential cost-competitiveness and increasing adoption over silicon carbide (SiC) in specific use cases, driving future revenue streams.

Texas Instruments' automotive audio amplifiers, featuring one-inductor modulation, are positioned as Stars. These innovations enhance in-cabin sound quality and simplify vehicle designs, directly addressing the growing consumer demand for premium audio experiences.

The global automotive audio market was valued at approximately $20.5 billion in 2023 and is projected to exceed $30 billion by 2028, growing at a CAGR of about 8.2%. TI's new amplifiers, integrated with advanced DSP cores, are strategically aligned to capture a significant share of this expanding market.

TI's 60GHz mmWave radar sensors are also Stars, enhancing in-cabin safety features like seat belt reminders and child presence detection. This technology addresses the automotive industry's increasing focus on safety, driven by regulations and consumer expectations.

The automotive safety market is experiencing robust growth, making TI's advanced radar sensors a key strategic offering. These integrated, high-performance solutions are critical for meeting evolving vehicle safety demands.

Microcontrollers (MCUs) represent a significant Cash Cow for Texas Instruments. These tiny, powerful processors are embedded in countless devices, from industrial machinery to automotive systems, forming the backbone of modern electronics.

In the first quarter of 2025, TI's Embedded Processing segment, which houses MCUs, saw its revenue remain relatively stable year-over-year. This stability, coupled with the widespread, established market penetration of their MCUs, ensures a consistent and reliable stream of cash for the company, underscoring their Cash Cow status.

Texas Instruments' Analog and Embedded Processing segments are its core cash cows, consistently generating substantial revenue and profit. The analog business, in particular, accounted for 78% of TI's revenue in 2024, a testament to its dominance in a mature $80 billion market. These segments benefit from TI's extensive product portfolio, deep market penetration, and efficient manufacturing capabilities, allowing them to fund innovation in other areas.

Discontinued product lines or technologies within Texas Instruments, like past divestitures of its defense segment in 1997 and computer hardware in 1994, would fall into the Dogs category of the BCG Matrix. These are areas that no longer fit TI's core strategy of analog and embedded processing, or have become technologically obsolete.

Such segments typically exhibit low market share and minimal growth prospects, representing a drain on resources that could be better allocated elsewhere. For instance, if TI were to maintain support for older, niche microcontrollers with declining demand, these would be prime examples of Dogs.

Products within Texas Instruments' portfolio that fall into the Dogs category are those with low market share and low growth prospects. These are often older, commoditized products, or those in segments where TI's competitive advantage is limited. For example, certain legacy microcontrollers or standard logic chips facing intense price competition and declining demand could be classified as dogs.

These products typically require significant resources to maintain but offer minimal returns. TI's strategic divestitures of non-core businesses, such as defense and computer hardware in the 1990s, represent past examples of shedding dog assets. More recently, products struggling to adapt to TI's direct sales model after changes in distributor relationships, especially those with limited direct engagement capabilities, could also be considered dogs.

The challenge with these products is that the investment needed to revitalize them often outweighs the potential gains, making them candidates for divestiture or reduced focus. For instance, the personal electronics components segment saw a seasonal downturn in Q1 2025, and products within this area that have low market share and face rapid obsolescence are prime examples of dogs.

Texas Instruments' Q1 2025 revenue for its Embedded Processing segment was down year-over-year, with a subdued 2025 forecast. This suggests that some embedded processing products, particularly those not aligned with high-growth sectors like automotive or AI, likely exhibit characteristics of dogs, possessing limited market share and growth potential.

The shift to software-defined vehicles (SDVs) presents a dynamic landscape for component suppliers like Texas Instruments (TI). While TI's existing integrated automotive chips are strong, areas focused on SDV-specific platforms, such as advanced domain controllers or specialized processing units for over-the-air updates and in-car AI, could be viewed as question marks. This segment is experiencing substantial growth, driven by the increasing demand for connected and intelligent vehicle features, with the global automotive software market projected to reach over $100 billion by 2027.

Texas Instruments' ventures into emerging technologies like advanced driver assistance systems (ADAS) and software-defined vehicles (SDVs) represent significant question marks. While the global ADAS market reached approximately $32.5 billion in 2023 and is expected to exceed $80 billion by 2030, TI's current market share in specific ADAS components or SDV platforms may be nascent. Similarly, the automotive software market, projected to surpass $100 billion by 2027, presents opportunities for TI's specialized processing units, but these are still developing areas for the company.