Texas Instruments betting video will drive semiconductor sales

DALLAS — Chipmaker Texas Instruments Inc. has ridden the wireless wave since the dawn of the cellular age, with its sales and profits growing along with the popularity of games, cameras and other fancy mobile phone features that require more computing horsepower.

Now, as the market for basic cell phones appears to be growing saturated in some parts of the world, the Dallas-based company whose chips are in about half of all mobile handsets is looking for ways to expand its existing business and find new ones for its semiconductors.

The key, executives believe, is video. It's not only going to be a factor in high-end cell phones but also other gadgets, from portable media players to surveillance systems.

"Video is the next big thing," says Greg Delagi, TI's general manager for so-called digital signal processors. "As video and images go digital, it's a billion-dollar opportunity in the next five years."

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