What changed in this filing

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Item 1. Business

2026-02-06 compared with 2025-02-14 · 41 added, 51 removed, 161 unchanged (36% of the section changed)

14 unchanged sentences

When we are successful in achieving these ambitions, our employees, customers, communities and shareholders all win.

As engineers, we are fortunate to work on exciting technology which helps our customers innovate to create a better world.

As engineers, we are fortunate to work on exciting technology that helps our customers innovate to create a better world.

Technology is the foundation of our company, but ultimately, our objective and the best metric for owners to measure our progress is through the growth of free cash flow per share over the long term.

10 unchanged sentences

The largest allocation over this period was to drive organic growth, which includes investments in R&D, sales and marketing, capital expenditures and working capital for inventory.

In this period, we allocated about $20 billion to capital expenditures.

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.

In this period, we allocated about $24 billion to capital expenditures to support future revenue growth, which will be a greater component of free cash flow per share growth going forward, as we are near completion of our six-year elevated capital expenditures cycle.

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

Dividends are designed to appeal to a broad set of investors, and share repurchases are made with the goal of the accretive capture of future free cash flow for long-term investors.

Lastly, for inorganic growth, we allocate to acquisitions that meet our financial and strategic objectives.

Lastly, for inorganic growth, we consider acquisitions that meet our financial and strategic objectives.

The third element of our strategy is efficiency, which we think of as constantly striving for more output for every dollar spent.

This is about getting our investments in the most impactful areas to maximize the growth of long-term free cash flow per share;

This is about investing in the most impactful areas to maximize the growth of long-term free cash flow per share;

it is not just about optimizing cost cutting to get to the last dollar of expense.

6 unchanged sentences

Semiconductors, generally known as “chips,” combine multiple transistors to form a complete electronic circuit.

We have a diverse product portfolio that is used to accomplish many different things, such as converting and amplifying signals, interfacing with other devices, managing and distributing power, processing data, canceling noise and improving signal resolution.

This broad portfolio includes more than 80,000 products that are integral to almost every type of electronic equipment.

2 unchanged sentences

Our Analog segment generated $14.01 billion of revenue in 2025.

Analog semiconductors change real-world signals, such as sound, temperature, pressure or images, by conditioning them, amplifying them and often converting them to a stream of digital data that can be processed by other semiconductors, such as embedded processors.

Analog semiconductors change real-world signals, such as sound, temperature, pressure or light, by conditioning them, amplifying them and often converting them to a stream of digital data that can be processed by other semiconductors, such as embedded processors.

Analog semiconductors are also used to manage power in all electronic equipment by converting, distributing, storing, discharging, isolating and measuring electrical energy, whether the equipment is plugged into a wall or using a battery.

As the digitization of electronics continues, there is a growing need and opportunity for analog chips to provide the power to run devices and the critical interfaces with human beings, the real world and other electronic devices.

Our Analog products are used in many markets, particularly industrial, automotive and personal electronics.

Our Analog products are used in many markets, including industrial, automotive, data center, personal electronics and communications equipment.

Sales of our Analog products generated about 79% of our revenue in 2025.

3 unchanged sentences

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, multiphase controllers and power stages, 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.

Signal Chain includes products that sense, condition and measure real-world signals and convert them into data that can be transferred or converted for further processing and control.

Our Signal Chain products include amplifiers, data converters, interface products, motor drives, clocks, logic and sensing products.

3 unchanged sentences

They are designed to handle specific tasks and can be optimized for various combinations of performance, power and cost, depending on the application.

Our devices vary from simple, low-cost microcontrollers used in applications such as electric toothbrushes to highly specialized, complex devices such as motor control.

Our products vary from wireless connectivity and simple, low-cost devices such as microcontrollers to highly specialized devices such as radar and vision processing.

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 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 develop 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.

8 unchanged sentences

Markets for our products

The table below lists the major markets for our products in 2024 and the estimated percentage of our 2024 revenue that the market represented.

The chart also lists, in declining order of our revenue, the sectors within each market.

The table below lists the markets for our products in 2025 and the estimated percentage of our 2025 revenue that the market represented.

In 2025, we realigned our markets to better reflect the growth opportunities for our analog and embedded products.

The table also lists, in declining order of our revenue, the sectors within each market.

Market Sector

1 unchanged sentence

(33% of TI revenue) Aerospace & defense

Medical & healthcare

Energy infrastructure

Building automation

Other industrial equipment

Medical & healthcare

Test & measurement

Other industrial equipment

Power delivery

1 unchanged sentence

(33% of TI revenue) Advanced driver assistance systems (ADAS)

Hybrid, electric & powertrain systems

Body electronics & lighting

Passive safety

Hybrid, electric & powertrain systems

Chassis control & safety

Data center Data center compute

(9% of TI revenue) Data center networking

Rack power & thermal management

Personal electronics Mobile phones

1 unchanged sentence

Portable electronics

Connected peripherals & printers

Home theater & entertainment

Connected peripherals & printers

Wearables (non-medical)

Enterprise systems Data center & enterprise computing

(5% of TI revenue) Enterprise projectors

Enterprise machine

Communications equipment Wireless infrastructure

1 unchanged sentence

Broadband fixed line access

Datacom module

Other (calculators and other)

(2% of TI revenue)

In addition, we sell calculators, which was about 1% of our revenue.

Market characteristics

3 unchanged sentences

Our competitors also include emerging companies, particularly in Asia.

We believe that competitive performance in the semiconductor market generally depends on several factors, including the breadth of a company’s product line, the strength and reach of its channels to market, technological innovation, product development execution, technical support, customer service, quality, reliability, price and manufacturing capacity and capabilities.

In addition, manufacturing process and package technologies that provide differentiated levels of performance and a structural cost advantage are competitive factors for our analog products, and customers’ prior investments in software development is a competitive factor for our embedded processing products.

We believe that competitive performance in the semiconductor market generally depends on many factors, including the breadth of a company’s product line, the strength and reach of its channels to market, technological innovation, product development execution, technical support, customer service, quality, reliability, price, and manufacturing capacity and capabilities, such as process and package technologies that provide differentiated levels of performance and a structural cost advantage.

In addition, customers’ prior investments in software development is also a competitive factor for our embedded processing products.

Semiconductor cycle

The semiconductor cycle refers to the ebb and flow of supply and demand and the building and depleting of inventories.

The semiconductor market historically has been characterized by periods of tight supply caused by strengthening demand and/or insufficient manufacturing capacity, followed by periods of surplus inventory caused by weakening demand and/or excess manufacturing capacity.

It has been characterized by periods of tight supply caused by strengthening demand and/or insufficient manufacturing capacity, followed by periods of surplus inventory caused by weakening demand and/or excess manufacturing capacity.

These are typically referred to as upturns and downturns in the semiconductor cycle.

7 unchanged sentences

Over the past several years, we have been investing in new capabilities to build closer direct customer relationships.

In 2024, about 80% of our revenue was direct, which includes TI.com.

In 2025, more than 80% of our revenue was direct, which includes TI.com.

Our investments in new and improved capabilities to directly support our customers include order fulfillment services, inventory programs, business processes and logistics and website and e-commerce capabilities.

7 unchanged sentences

We own and operate semiconductor manufacturing facilities in North America, Asia, Japan and Europe.

These include both wafer fabrication and assembly/test facilities.

These include both wafer fabrication (fab) and assembly/test facilities.

We invest in manufacturing technologies and do most of our manufacturing in-house.

This strategic decision to make manufacturing and technology a core competitive advantage provides us with tangible benefits of lower manufacturing costs and greater control of our supply chain, offering our customers geopolitically dependable capacity.

We have focused on creating a competitive manufacturing structural cost advantage by investing in our advanced 300mm capacity.

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 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:

• Ramping production in 300mm wafer fabrication facilities RFAB2 in Richardson, Texas, and LFAB1 in Lehi, Utah.

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

• Continuing 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 in the years ahead.

We assess and are careful to address potential health, safety and environmental risks presented by our operations, including our manufacturing operations.

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

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.

We have focused on creating a competitive manufacturing structural cost advantage by investing in our 300mm capacity, as an unpackaged chip built on a 300mm wafer costs about 40% less than an unpackaged chip built on a 200mm wafer.

We continue 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, automotive and data center markets, is expected to continue well into the future.

In 2025, we continued qualifying and ramping production at our newest 300mm wafer fabs in Richardson and Sherman, Texas, and Lehi, Utah.

These fabs are well positioned to support customer demand, external foundry transfers and internal transfers from our legacy 150mm facilities.

We expect 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.

In 2025, we sourced the majority of our wafer fabrication, as well as assembly and test, internally.

With our planned capacity expansions, we expect our internal sourcing to continue to increase.

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

We source materials, parts and supplies from a diverse set of suppliers globally.

The materials, parts and supplies essential to our business are generally available.

Our multisite, multiflow production strategy, paired with our business continuity program and global supplier network, supports supply continuity if shortages occur and if materials are available from limited suppliers or geographies.

We assess and are careful to address potential health, safety and environmental risks presented by our operations, including our manufacturing operations, and our efforts are focused on improving how we responsibly and sustainably manufacture our products.

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.

1 unchanged sentence

Inventory levels will vary based on market conditions and seasonality.

Raw materials

We source materials, parts and supplies from a diverse set of suppliers globally.

The materials, parts and supplies essential to our business are generally available, and we believe that such materials, parts and supplies will be available in the foreseeable future.

We adjust factory loadings as needed to execute on this inventory strategy.

Intellectual property

8 unchanged sentences

Mark Gary 51 Senior Vice President

Haviv Ilan 56 Director, President and Chief Executive Officer

Haviv Ilan 57 Director, Chairman of the Board, President and Chief Executive Officer

Katie Kane 41 Senior Vice President, Secretary and General Counsel

4 unchanged sentences

Amichai Ron 48 Senior Vice President

Richard Templeton 66 Director and Chairman of the Board

Christine Witzsche 41 Senior Vice President

2 unchanged sentences

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

Bahai, Ilan, Kozanian, Lizardi, Ron and Templeton have served as executive officers of the company for more than five years.

Gary became an executive officer in 2020.

Bahai, Gary, Ilan, Kozanian, Lizardi and Ron have served as executive officers of the company for more than five years.

Roberts and Ms.

26 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