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TEXAS INSTRUMENTS VOIP SEMICONDUCTOR PROFILE - October, 2005

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More VoIP  Information Located at Our VoIP Market Research Page

TEXAS INSTRUMENTS VOIP SEMICONDUCTOR PROFILE 
 
Texas Instruments, considered the number one VoIP chip company, has developed chip products for five different segments of the VoIP market. These include the IP Phone market, the CPE gateway market, the high density gateway market, and both the cable modem and DSL modem markets.

For the IP phone market it offers the TNETV1050 and TNETV1055 chips along with Telogy software for VoIP applications. For WLAN IP phones it offers the TNETV1600 chip.
 
Texas Instruments claims that so far to date over 80 percent of IP phones include its technology.
 
Texas Instruments also offers VoIP gateway solutions for the residential/SOHO and enterprise gateway market. For equipment product development offers Texas Instruments offers design platforms based on its TMS320C54x and TMS320C55x DSP cores with VoIP software from its Telogy Software unit.
 
Texas Instruments VoIP chip line up includes its well-known TMS320C55x DSP chip, which is the basis for VOCAL’s VoIP Analog Telephone Adapter. That adapter, used to add phones lines to broadband connections, also includes a number of analog, power management and logic chips. 3Com also uses TI’s DSP chips for its complete portfolio of IP phones.
 
Texas Instruments also offers its TNETV1050 IP phone technology chip. That chip, part of the TNETV2xxx series of VoIP gateway technology was selected by Mitel for use in the development of VoIP gateways or IP phones. Mitel selected Texas Instruments as its primary supplier of VoIP chips for IP phone sets and VoIP gateway systems in May of 2005.
 
In late August of 2005 Texas Instruments announced a voice-over-cable (VoCable) chipset and new Wideband DOCSIS reference design to enable the design of VoIP cable phone technology. The DSP based chipset referred to as the TNETC47xx (Puma-4) VoCable chipset comes complete with fax support, permitting faxes to be sent over the cable TV network. In that announcement, Texas Instruments cited research from Kinetic Strategies, which indicated that over 1.7 million of Texas Instruments VoCable chips were shipped in multimedia terminal adapters in the first half of 2005 – representing a little over 65 percent of the market.
 
Customers for TI’s VoCable chipsets includes the major cable modem companies: ARRIS, Motorola, Pace and Terayon. Terayon Communication Systems, Inc. (NASDAQ:TERN) multimedia terminal adapters, the TJ 945 and the TJ 955, for the home cable modem market are based on the Texas Instruments chipset technology.
In addition to chips for VoIP phones, Texas Instruments also has a collection of other chip products that are also needed to implement VoIP such as broadband DSL chips.
 
Texas Instruments number one position in the VoIP market is attributed to its product development alignment with Vonage Holding Corp. Vonage gives Texas Instrument an advantage in that it is one of the largest VoIP service providers. Vonage, which this year received over $200 million in funding, plays a defining role in the requirements of the equipment its network can interface with. In that regard, it also plays a role in product development with VoIP equipment manufacturers and semiconductor companies. For example as a result of Vonage’s January 2004 collaboration with Texas Instruments, in August 2004, NETGEAR selected the Texas Instruments / Vonage jointly developed chips for its router product.
 
That combination of DSP, DSL and Vonage, has resulted in Texas Instruments double digit growth in the VoIP market. According to Bill Simmelink, general manager of TI's VoIP business unit. "TI shipped 50 million VoIP ports through 2003 and doubled that figure in the last year alone, becoming the first company to reach the milestone of shipping over 100 million VoIP ports, demonstrating the explosive growth of VoIP. Together with Vonage we are on track to deliver the benefits of broadband telephony to millions of consumers, building on our leadership and technology innovations in VoIP."
 
Table: Texas Instruments Port Shipments (Millions of Units, Estimate)
 
2005     150
2004     100
2003      50
 
Texas Instruments, because of its large size, has a significant company portfolio. In 2005, for example it invested in General Bandwidth, a VoIP equipment vendor.
 
Texas Instruments also has worked with Indian companies such as ITI to develop a multi-network VoIP phone.

 
Copyright 2004, 2005, Mark C. Stansberry, All Rights Reserved
 
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