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TAP TIMES -30- MARCH 2022
Stocks (from 29) about 2X. It also sells embedded proces-
sors and digital light processors. It is the
Simply Wall Street said it was going to fo- third largest U.S. semiconductor maker
cus on Teradyne’s return on equity.. with wafer fabs after Intel and Micron.
ROE is a useful tool “Braggin’ Rights”
“ROE is a useful tool to assess how effec- If you make your
tively a company can generate returns on home in the Lone Star
the investment it received from its share- state, it’s important
holders. to have “braggin’
rights,” and TI has
“To begin with, Teradyne has a pretty high them in spades.
ROE, which is interesting. Second, a com-
parison with the average ROE reported by Based in Dallas, TI
the industry of 18% also doesn’t go unno- is the home of the
ticed by us. integrated circuit. The late Jack Kilby invented the
IC while working at TI.
“As a result, Teradyne’s exceptional 36% The late Jack Kilby invented the IC, for
net income growth seen over the past five which he later shared the Nobel Prize in
years, doesn’t come as a surprise. Physics in 1958, while working at TI’s Cen-
tral Research Labs.
Growth higher than the average
“As a next step, we compared Teradyne’s PBS reported, “To snag the world’s atten-
net income growth with the industry, and tion, Texas Instruments needed a market-
pleasingly, we found that the growth seen ing gimmick. They wanted a flashy product
by the company is higher than the average to showcase the IC. A calculator seemed
industry growth rate of 19%.” just the thing. In a mere two years, a TI
10 Founded in 1930 The company is among the world’s larg-
group led by Kilby developed a calculator
Texas Instruments (TXN)
small enough to be held in your hand.”
as Geophysical Sci-
est semiconductor patent holders, accord-
ences, a supplier of
ing to the IFI Global 25. In 2021, TI had
seismic detection
a patents archive of 13,282, placing it at
Number 61 on the global list. Samsung
equipment, Texas
Instruments was
and Intel scored Number 24 with 25,784.
reorganized into
its current form in Electronics was first with 90,416 patents,
1951. As TI, it predates every exist- Long-serving CEO
ing chip maker, even Fairchild Semi- Rich Templeton, 64, is one of the indus-
conductor.- try’s longest serving/surviving CEOs. He
joined the company after graduating from
Texas Instruments was founded in its Union College, Schnedtady, N.Y. in 1980.
original form by Cecil H. Green, J. Erik
Jonsson, Eugene McDermott, and Patrick In 1996, Templeton took charge of TI’s
E. Haggerty. The company ranks in most semiconductor business. From April
top 10 chip makers’ lists. TI outsells com- 2000-April 2004, he was COO. In May
petitor Analog Devices in this segment by 2004, he was named CEO. next page
