Infineon, ST and NXP in the Two-ThirdsNarrow moat
Texas Instruments (TXN) — moat facet
Depth against breadth, in the two end markets that are two-thirds of TI's revenue.
In automotive and industrial — two-thirds of TI's revenue — the competition is European, specialised, and designed in for a decade.
Industrial and automotive were 33% of TI's 2025 revenue each, and those are the markets where Infineon, STMicroelectronics and NXP are strongest.1 The European suppliers compete by depth rather than breadth: power semiconductors for electric powertrains, microcontrollers designed into specific vehicle platforms, application-specific parts developed with a single carmaker over years.
TI's position is the opposite and works better in some places than others. In industrial, where a customer is designing a piece of equipment and wants one supplier for the whole board, breadth wins. In automotive, where a platform decision is made once for a decade against functional-safety requirements and a named engineering relationship, depth competes very well.
The evidence that TI is doing fine is in the mix and the growth: automotive re-accelerated in the June 2026 quarter and industrial demand grew more than 30% year over year across all sectors and regions.2
The evidence that it is contested is that TI has never held a dominant position in either market — its own description of the landscape is fragmented, with dozens of suppliers.3
The measure is Analog revenue growth against the analog market's, because share in these two end markets moves slowly and shows up nowhere else.
Infineon, STMicroelectronics and NXP compete on depth in automotive and industrial, as they have for years. TI's industrial demand grew more than 30% year over year and automotive re-accelerated in the June quarter, so no share is visibly moving.
The European rivals' home market; TI growing there as fast as overall says it is holding its share.
- ReportedIndustrial and automotive were 33% of TI's 2025 revenue each, and those are the markets where Infineon, STMicroelectronics and NXP are strongest.Texas Instruments Incorporated, Form 10-K for the year ended 31 December 2025 (SEC, CIK 97476) — Item 1, Business. TI's two reportable segments are Analog and Embedded Processing, with remaining activities in Other; operations began in 1930 and it has design, manufacturing or sales operations in more than 30 countries. The product portfolio includes more than 80,000 products. TI states four sustainable competitive advantages: a strong foundation of manufacturing and technology, a broad portfolio of analog and embedded processing products, the reach of its market channels, and the diversity and longevity of its products, markets and customer positions, which in combination it describes as difficult to replicate. An unpackaged chip built on a 300mm wafer costs about 40% less than one built on a 200mm wafer; TI continued qualifying and ramping production at its newest 300mm fabs in Richardson and Sherman, Texas, and Lehi, Utah, supporting external foundry transfers and internal transfers from its legacy 150mm facilities, and expects to maintain sufficient internal capacity to meet the majority of its production needs, offering customers geopolitically dependable capacity. TI sells to over 100,000 customers, with about half of revenue derived from customers outside its largest 50; more than 80% of revenue was direct in 2025, including TI.com. End markets as a percentage of 2025 revenue: industrial 33%, automotive 33%, personal electronics 21%, data centre 9%, communications equipment 3%, and calculators about 1%. About 60% of revenue comes from customers headquartered outside the United States; revenue from end customers headquartered in China represented about 20% of revenue in 2025, while revenue from products shipped into China represented about 50%. The analog and embedded processing markets remain highly fragmented, with significant global competition from dozens of large and small companies including emerging companies, particularly in Asia. The company's stated objective is the growth of free cash flow per share over the long term. — FY2025 · publ. 2026-02-06 · source ↗
- ReportedThe evidence that TI is doing fine is in the mix and the growth: automotive re-accelerated in the June 2026 quarter and industrial demand grew more than 30% year over year across all sectors and regions.Texas Instruments Incorporated, Form 10-Q for the quarter ended 30 June 2026 (SEC, CIK 97476). Revenue $5,463M against $4,448M a year earlier, and $10,288M for the six months against $8,517M; cost of revenue $2,111M; gross profit $3,352M against $2,575M — a 61.4% gross margin against 57.9%; research and development $535M against $527M; selling, general and administrative $490M against $485M; acquisition charges $17M; operating profit $2,310M against $1,563M. Income before income taxes $2,238M; provision for income taxes $258M; net income $1,980M against $1,295M. Basic EPS $2.16 and diluted EPS $2.14, against $1.42 and $1.41, on 920 million diluted shares. — Q2 2026 · publ. 2026-07-24 · source ↗
- ReportedThe evidence that it is contested is that TI has never held a dominant position in either market — its own description of the landscape is fragmented, with dozens of suppliers.Texas Instruments Incorporated, Form 10-K for the year ended 31 December 2025 (SEC, CIK 97476) — Item 1, Business. TI's two reportable segments are Analog and Embedded Processing, with remaining activities in Other; operations began in 1930 and it has design, manufacturing or sales operations in more than 30 countries. The product portfolio includes more than 80,000 products. TI states four sustainable competitive advantages: a strong foundation of manufacturing and technology, a broad portfolio of analog and embedded processing products, the reach of its market channels, and the diversity and longevity of its products, markets and customer positions, which in combination it describes as difficult to replicate. An unpackaged chip built on a 300mm wafer costs about 40% less than one built on a 200mm wafer; TI continued qualifying and ramping production at its newest 300mm fabs in Richardson and Sherman, Texas, and Lehi, Utah, supporting external foundry transfers and internal transfers from its legacy 150mm facilities, and expects to maintain sufficient internal capacity to meet the majority of its production needs, offering customers geopolitically dependable capacity. TI sells to over 100,000 customers, with about half of revenue derived from customers outside its largest 50; more than 80% of revenue was direct in 2025, including TI.com. End markets as a percentage of 2025 revenue: industrial 33%, automotive 33%, personal electronics 21%, data centre 9%, communications equipment 3%, and calculators about 1%. About 60% of revenue comes from customers headquartered outside the United States; revenue from end customers headquartered in China represented about 20% of revenue in 2025, while revenue from products shipped into China represented about 50%. The analog and embedded processing markets remain highly fragmented, with significant global competition from dozens of large and small companies including emerging companies, particularly in Asia. The company's stated objective is the growth of free cash flow per share over the long term. — FY2025 · publ. 2026-02-06 · source ↗