What changed in this filing

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Item 1. Business

2024-02-02 compared with 2023-02-03 · 24 added, 28 removed, 196 unchanged (21% of the section changed)

6 unchanged sentences

We were pioneers in the transition from vacuum tubes to transistors and then to integrated circuits.

As each generation became more reliable, more affordable and lower in power, semiconductors were used by a growing number of customers and markets.

This passion is alive today as we help our customers develop electronics and new applications, particularly in industrial and automotive markets.

As each generation has become more reliable, more affordable and lower in power, semiconductors are used by a growing number of customers and markets.

Our passion continues to be alive today as we help our customers develop electronics and new applications, particularly in industrial and automotive markets.

For many years, we have run our business with three overarching ambitions in mind.

18 unchanged sentences

In this period, we allocated just over $15 billion to capital expenditures.

Going forward, we expect increased capital expenditures to be the largest driver of free cash flow growth over the next 10 to 15 years.

Our increased capital expenditures are to support future revenue growth, which will be a greater component of free cash flow per share growth going forward.

Beyond that, we also allocated capital to dividends and share repurchases.

24 unchanged sentences

Power includes products that help customers manage power in electronic systems.

Our broad portfolio is designed to manage power requirements across different voltage levels, including battery-management solutions, DC/DC switching regulators, AC/DC and isolated controllers and converters, power switches, linear regulators, voltage references and lighting products.

Our broad portfolio is designed to manage power requirements across different voltage levels, including battery-management solutions, DC/DC switching regulators, AC/DC and isolated DC/DC switching regulators, power switches, linear and low-dropout regulators, voltage references and lighting products.

Signal Chain includes products that sense, condition and measure real-world signals to allow information to be transferred or converted for further processing and control.

6 unchanged sentences

Our Embedded Processing products are used in many markets, particularly industrial and automotive.

An important characteristic of our Embedded Processing products is that our customers often invest their own research and development (R&D) to write software that operates on our products.

An important characteristic of our Embedded Processing products is that our customers often invest their own R&D to write software that operates on our products.

This investment tends to increase the length of our customer relationships because many customers prefer to reuse software from one product generation to the next.

14 unchanged sentences

(40% of TI revenue) Grid infrastructure

Building automation

Test & measurement

Aerospace & defense

Test & measurement

Building automation

Power delivery

7 unchanged sentences

Passive safety

Personal electronics PC & notebooks

(20% of TI revenue) Mobile phones

Personal electronics Mobile phones

(15% of TI revenue) PC & notebooks

Portable electronics

34 unchanged sentences

Our TI.com e-commerce channel offers a localized online experience in many countries, with convenience features such as immediate availability, local currency, payment methods, invoicing and importer of record.

Our new application programming interfaces (APIs) give customers the ability to directly access real-time inventory information about TI products from their own systems, enabling them to purchase available chips immediately to better support their supply needs, reducing cost and delays.

Our new application programming interfaces (APIs) give customers the ability to directly access real-time information about TI products from their own systems, enabling them to purchase available chips immediately to better support their supply needs, reducing cost and delays.

In addition to doing business directly with TI, we offer customers the option of using a single worldwide distributor and a few region-specific distributors for order fulfillment.

9 unchanged sentences

An unpackaged chip built on a 300mm wafer costs about 40% less than an unpackaged chip built on a 200mm wafer.

We continue to invest to strengthen our competitive advantage in manufacturing and technology as part of our long-term capacity planning.

We continue to invest to strengthen our competitive advantage in manufacturing and technology as part of our long-term capacity plan to meet demand over time.

Semiconductor growth in electronics, particularly in industrial and automotive markets, is expected to continue well into the future.

Progress and investments include:

• starting production in 300-mm wafer fabrication facility RFAB2 (Richardson, Texas);

• starting production in 300-mm wafer fabrication facility LFAB (Lehi, Utah);

• starting construction on our next two 300-mm wafer fabrication facilities in Sherman, Texas, SM1 and SM2.

This North Texas site has the potential for four fabrication facilities to meet demand over time, as semiconductor growth in electronics, particularly in industrial and automotive markets, is expected to continue well into the future.

SM1 production is expected to begin in 2025.

• Ramping production in 300mm wafer fabrication facility RFAB2 in Richardson, Texas.

• Ramping production in 300mm wafer fabrication facility LFAB1 in Lehi, Utah.

• Continuing construction on SM1 and SM2 in Sherman, Texas, where we are building four 300mm wafer fabrication facilities.

• Starting construction on LFAB2, another 300mm wafer fabrication facility in Lehi, Utah.

Together, these investments are designed to strengthen our manufacturing and technology competitive advantage, provide us with lower costs and greater control of our supply chain, and support growth over the next 10 to 15 years.

1 unchanged sentence

We care for our environment and work to prevent pollution and the potential risks related to climate change.

We invest to reduce emissions long-term by installing abatement devices, using alternative gases and expanding renewable energy, in addition to implementing practices such as recycling and reusing materials and properly handling hazardous and restricted substances.

We invest to reduce emissions over the long term in several ways, including installing new factory equipment with state-of-the-art emissions reduction technology, as well as retrofitting existing factory equipment with advanced abatement technology, in addition to using alternative gases and increasing the use of renewable electricity.

We also continue to implement practices such as recycling and reusing materials and properly handling hazardous and restricted substances.

We expect to continue to maintain sufficient internal manufacturing capacity to meet the majority of our production needs and to obtain manufacturing equipment to support new technology developments and revenue growth.

2 unchanged sentences

To supplement our internal manufacturing capacity, we selectively use the capacity of outside suppliers, commonly known as foundries and subcontractors.

Our objectives for inventory are to maintain high levels of customer service, maintain stable and competitive lead times, minimize inventory obsolescence and improve manufacturing asset utilization.

Our objectives for inventory are to maintain high levels of customer service, maintain dependable and competitive lead times, minimize inventory obsolescence and improve manufacturing asset utilization.

To meet these objectives and to allow greater flexibility in periods of high demand, our strategy is to build ahead of demand our broad-based products that are used across a diverse set of applications and customers and have low risk of obsolescence.

Inventory levels will vary based on market conditions and seasonality.

As a result, we expect to increase our inventory levels over time.

Raw materials

10 unchanged sentences

Bahai 61 Senior Vice President

Flessner 52 Senior Vice President

Gary 49 Senior Vice President

Haviv Ilan * 54 Director, Executive Vice President and Chief Operating Officer

Haviv Ilan 55 Director, President and Chief Executive Officer

Kozanian 41 Senior Vice President

3 unchanged sentences

Amichai Ron 46 Senior Vice President

Templeton * 64 Director, Chairman of the Board, President and Chief Executive Officer

Templeton 65 Director and Chairman of the Board

Cynthia Hoff Trochu 60 Senior Vice President, Secretary and General Counsel

Witzsche 39 Senior Vice President

* On January 19, 2023, Mr.

Ilan was elected by the board of directors to succeed Mr.

Templeton as president and chief executive officer, effective April 1, 2023.

Templeton will continue as chairman of the board.

Mohammad Yunus 46 Senior Vice President

The term of office of these officers is from the date of their election until their successor shall have been elected and qualified.

All have been employees of the company for more than five years.

Templeton, Ilan and Lizardi and Ms.

Bahai, Ilan, Kozanian, Lizardi and Templeton and Ms.

Trochu have served as executive officers of the company for more than five years.

Bahai, Flessner and Kozanian became executive officers of the company in 2018.

Ron became an executive officer in 2019.

3 unchanged sentences

Leonard became an executive officer in 2022.

Yunus became an executive officer in 2024.

Human capital management

23 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business