Sustainability, Cost Efficiency, Continuity Through Innovation

Q: From the perspective of a Tier 1 supplier, what core problem does Texas Instruments solve in an era where vehicles are turning into computers on wheels?

A: Our strength lies in providing the technology required to bring to life the features that OEMs or Tier 1 suppliers envision for their products. We provide the bricks to the architects. Whether an OEM or Tier 1 decides to design a digital cluster, an ABS system, a central communications computer, or motor control, we provide them with the technological solutions to execute it under their defined parameters, be it higher speed, smaller footprint, or superior efficiency. On a macro level, we solve technological integration by acting as semiconductor providers.

Q: What are the main differentiating factors of Texas Instruments compared to other suppliers in the sector?

A: We rely on three fundamental pillars. The first is controlling our own manufacturing: we handle a high percentage of production internally, which is uncommon in the semiconductor industry. The second is the diversity of our portfolio, featuring over 80,000 different products. This breadth allows us to address customer challenges more comprehensively, efficiently, quickly, and cost-effectively. The third is technological innovation backed by a legacy of more than 80 years. Direct investment in R&D  enables us to anticipate industry challenges and remain relevant.

Q: At what stage of development do you engage with clients when presented with a design challenge, such as reducing weight or wiring complexity? What role does the supply chain play in this conceptual integration?

A: Ideally, we engage right from the product’s conceptualization phase. Although we can step in at any stage, even when a client needs to solve a last-minute issue, being integrated from the beginning allows us to collaborate more closely, anticipate future technological needs, and facilitate full product differentiation alongside the adoption of our technology.

Innovation is not limited to the technology itself; it spans the entire supply chain. It involves ensuring long-term sustainability, cost efficiency, and continuity of supply. It is not just about delivering a functional chip, but about being the right supplier that backs the product with quality guarantees, supply capacity, and social responsibility across its manufacturing processes.

Q: Some veteran drivers perceive vehicle modernization as a loss of automotive essence. What is your perspective on this paradigm shift?

A: It is a natural reaction to the speed at which the technological transition is taking place, similar to what we experienced with the adoption of mobile phones or AI. While there will always be a sense of nostalgia for traditional elements like manual transmissions or air-cooled engines, we must recognize the advantages that new technologies bring to mobility and quality of life. For example, autonomous vehicles offer safe and efficient transportation solutions, optimizing commute times in complex urban environments.

Q: Validation cycles in the automotive industry are becoming increasingly shorter. How are you adapting your processes to accelerate the arrival of new platforms to production?

A: Vehicle design cycles have shrunk drastically, moving from five years down to periods of up to two years. To match this pace, our development technology must be more agile and efficient. Early engagement with the client is key, as it grants us the time required to design the right solution. Additionally, we focus on reusing flexible and scalable platforms that allow the same semiconductor to be deployed across multiple applications, ensuring agility, manufacturing capacity, and high quality standards.

Q: What competitive advantage does having in-house manufacturing plants in North America represent for the company compared to competitors relying on third parties in Asia?

A: Controlling our own production grants us superior operational responsiveness and flexibility. When facing supply contingencies, we can directly adjust manufacturing lines to prioritize critical deliveries based on our clients’ operational needs. This gives us sovereignty over our processes, allowing us to react swiftly without depending exclusively on third-party dynamics or external geopolitical factors.

Q: What solutions are you developing to overcome limitations in managing lithium-ion and solid-state batteries?

A: Power management and control within hybrid and 100% electric platforms is critical. We maintain close collaboration with both vehicle manufacturers and battery developers to understand their technical requirements regarding charging, discharging, and protection. Beyond continuous innovation in our standard product lines, we have a dedicated R&D division focused on emerging technologies with a three-to-10-year horizon, allowing us to design advanced energy management and safety solutions.

We hold a major leadership position in the electrification segment, particularly in the design of battery management and charging systems, making us a key player in this industrial transition.

Q: What benefits does the end user gain from the increase in data volume processed by current vehicle architectures?

A: Although the user primarily interacts with connectivity and entertainment interfaces, most of the processing occurs invisibly under the hood. Modern vehicles utilize High Performance Computing (HPC) units to manage astronomical volumes of information. This architecture demands parallel and redundant channels to guarantee safe and fault-free data transmission. Ultimately, this entire technical infrastructure translates into greater safety, comfort, and reliability for the driver.

Q: What cybersecurity measures are necessary considering the increased presence of electronic components and connectivity?

A: A modern vehicle with advanced computing architecture becomes another network node, exposed to cybersecurity risks similar to those of a server or telecommunications device. The difference lies in the attack surface, or the number of vulnerable contact points. We deploy robust cybersecurity layers to protect both wireless communications and physical diagnostic ports. The challenge lies in balancing the protection of critical vehicle systems with the right to perform legitimate repairs and maintenance.

Q: How does Texas Instruments help make technologies like radar and LiDAR accessible for the mass market?

A: Texas Instruments’ core vision is to make semiconductors more affordable to better serve society. In radar and LiDAR technologies, we hold a leading position that enables us to continuously innovate and lower production costs. Our focus is centered on optimizing sensing technology so that advanced safety features can be integrated into vehicles across all segments.

Texas Instruments created the Digital Signal Processor (DSP) and has a long history in real-time digital image processing. Rather than one technology replacing the other, the trend points toward a complementary combination of both. Integrating LiDAR and vision systems leverages the strengths of each technology, delivering the redundancy required to guarantee maximum operational reliability.

Q: How will AI embedded in sensors enable autonomous driving to adapt to complex urban environments?

A: Vehicles will feature embedded AI capabilities to process local data and adapt their behavior to the specific dynamics of each environment, such as traffic patterns or pedestrian flow in major cities. However, in terms of control, final decision-making and the supervision of critical systems will continue to rest on the human element to ensure maximum safety.

Q: How does the company leverage its infrastructure in North America to ensure supply continuity?

A: We have optimized our production and communication systems to provide customers with complete visibility into the origin of every component, from wafer fabrication to assembly and test phases. This traceability ensures compliance with USMCA tariff regulations, prevents supply chain conflicts, and delivers flexible production flows tailored to the geographical requirements of manufacturers in North America and worldwide.

We have regional and global teams dedicated to technical and operational support. Maintaining direct communication with clients enables us to anticipate potential supply disruptions before they become operational issues, ensuring an agile response aligned with their production requirements.

Q: What are Texas Instruments’ short- and medium-term operational and technical priorities for the automotive sector?

A: Our priority is to continue delivering technological innovation that allows our customers to differentiate their products, while guaranteeing the timely supply of components built to the highest quality standards and cost competitiveness. The automotive and industrial sectors account for over 50% of Texas Instruments’ revenue. Although we maintain a diversified portfolio, our clear focus on these two segments has remained firm over the past decade and will continue to be a key strategic priority.

Success is defined as expanding our market share within the semiconductor architecture of the automotive sector. The goal is reaching a stage of stable supply, characterized by normalized and predictable demand. To get there, it is essential that global semiconductor manufacturing capacity continues to expand to meet the market’s growing technological demand.