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Texas Instruments (TXN) Unveils GaN-Based Reference Design

Zacks Equity Research

Texas Instruments TXN or TI recently unveiled a three-phase inverter reference design, based on gallium nitride (GaN).

The reference design will help engineers build motor drives and next-generation industrial robotics that are more efficient and suitable for high drain voltage operating conditions. These GaN-based products are more competitive and offer size, efficiency, performance and speed advantages compared to other products available in the market. 

In the last one year, the company’s shares have underperformed the Zacks Semiconductor - General industry. It has increased 48.1% compared with the industry’s gain of 57.4%.

Details

The new GaN Inverter Reference Design features TI's LMG3410 600-V, 12-A GaN power module.  This allows the design to switch up to 5x faster than silicon FETs.  Its efficiency level is greater than 98% at 100 kHz and greater than 99% at 24 kHz pulse width modulation (PWM) frequency.

The new reference design allows designers to optimize switch performance by reducing power loss in the motor and also reduces the heat sink to save board space. It also adjusts voltage frequency and achieves ultra-fast current loop control. Additionally, it features AMC1306 isolated delta-sigma modulators which helps in increasing motor-control performance.

With increasing usage of GaN power modules in auto and industrial markets, Texas Instruments is looking at expanding its presence in these sectors to further augment its revenues.

Texas Instruments Incorporated Revenue (TTM)

Texas Instruments Incorporated Revenue (TTM) | Texas Instruments Incorporated Quote

Bottom Line

TI's increasing focus on new products should generate solid returns. The company's diverse portfolio targeting different market segments such as smart grid, factory automation, high-voltage power, LED lighting and control are also positives for its future revenue growth.

The launch will enhance Texas Instruments’ differentiated product pipeline and is expected to improve its market share. However, Texas Instruments operates in an intensely competitive industry and companies such as Analog Devices give stiff competition.

The company is slated to report its second-quarter 2017 results on Jul 25.

Zacks Rank & Stocks to Consider

Currently, Texas Instruments has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector are KLA-Tencor KLAC, Applied Materials AMAT and Advanced Energy Industries, Inc. AEIS. While KLA-Tencor and Applied Materials sport a Zacks Rank #1 (Strong Buy), Advanced Energy Industries, Inc. carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

KLA-Tencor delivered a positive earnings surprise of 11.55%, on average, in the last four quarters.

Applied Materials delivered a positive earnings surprise of 3.35%, on average, in the trailing four quarters.

Advanced Energy Industries, Inc. delivered a positive earnings surprise of 10.46%, on average, in the trailing four quarters.

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