As Texas Instruments is set to complete four decades in India, TI’s Elizabeth Jansen explained to EFY’s Yashasvini Razdan the significance of the proximity with the Indian customer at the SEMICON India 2024.
Q. How has the industry focus of Texas Instruments (TI) evolved over the past 40 years in India?
A. Forty years ago, when we entered the Indian market, we were focused on product research and development (R&D), specifically in chip design and enabling design activities. Over time, we have expanded beyond R&D to include a local salesforce with technical sales representatives and field application engineers.
Our focus is on industrial and automotive markets globally while catering to the Indian market’s unique demands, such as two-wheeler electrification, sustainable energy solutions, microinverters for solar panels, smart metering, and consumer appliances like fans that heavily rely on semiconductors. These sectors present significant opportunities for TI’s semiconductor products, and the local market’s demand for our solutions is likely to intensify in the coming years.
Q. Where do you witness the maximum sales from — tier one cities like Bengaluru, Delhi, tier two like Pune, or tier three cities such as Hassan?
A. We go where our customers go. We have sales offices in Bengaluru, Pune, Delhi, and Ahmedabad. As more customers emerge, we continuously assess where we need to expand. Right now, we are primarily focused on tier one and tier two cities, but the future is open, and we are not limiting ourselves.
As for tier three cities like Coimbatore or Hassan, which are becoming electronics manufacturing hubs, we are closely monitoring developments and will expand our presence where customer demand takes us.
Q. India is a cost-sensitive market, and customers have different needs. How does TI reach out to these customers in different segments?
A. We have customers with a legacy in certain applications but are now shifting towards more cost-competitive solutions. Others aim to differentiate through technology while remaining affordable. To reach out to these customers, our sales team focuses on specific customer sets, identifying the primary problem to be solved and then providing highly differentiated components that are also cost-effective, without compromising on quality or innovation.
Q. What kind of investments are made to support this strategy?
A. Our investments are twofold: ensuring that our designs are scalable for mass production and exploring further manufacturing capabilities to meet future demand. We are making investments in R&D in India, across multiple product categories, to understand customer requirements better and adapt our designs, while ensuring they are manufacturable at scale and cost-effective.
We are focused heavily on expanding capacity at a global level and are building more fabs to ensure we have the manufacturing capacity to support high-volume production. While the primary manufacturing operations are currently global, we are continuously evaluating the potential for expanding local manufacturing capacity. Although no decisions have been made yet, this remains an ongoing process.
Q. Do you have any specific innovations or customisations for India?
A. We have innovations in inverters and microinverters for the grid space to support real-time control, essential for both energy efficiency in electrification and industrial applications.
Recently, we introduced the MSPM0, the lowest-cost family of microcontrollers (MCUs). Almost every application needs an MCU for housekeeping tasks, and with the MSPM0, we are providing a scalable portfolio that we manufacture in-house at a very competitive cost.
Q. How does capacity investment with regard to manufacturing impact the Indian customer?
A. From a customer perspective, the top priority is getting the parts they need at the right cost and at the right time. Over the past few years, we have added seven fabs globally, directly increasing the manufacturing capacity for all our customers, including those in India. This ensures that our Indian customers can get the parts they need, when they need them, to sell their products successfully.
The Indian R&D team plays a critical role here. They ensure that the parts commonly used in the local market are well-designed, with a focus on avoiding capacity bottlenecks. When we design, we consider cost as well as availability for future production. The major strength of our India operations is the direct input from sales that is translated into R&D efforts. In fact, our R&D team in India sometimes communicates directly with customers to ensure their needs are met. Very few other sites have such feasibility.
Q. We have talked about cost competitiveness at breadth, but would not your products be more cost-competitive for India if they were manufactured in India?
A. At TI, we approach everything with the long term in mind. For instance, we have been in Bengaluru for so many years now, and our commitment to the region has remained strong. Wherever we invest, it is with the intention of staying for decades.
As the environment continues to evolve, it is possible that manufacturing in India becomes a viable option for us in the future. For now, we are still in the evaluation phase. It is a topic we are carefully considering, and what happens next remains to be seen. But rest assured, we are keeping a close eye on the opportunities as they arise.
Q. How can your customers in India access the products—is it e-commerce, or distributors?
A. We want them to have the flexibility to buy from external distributors or directly from our website ‘TI.com’. Specifically for India, we are localising this approach by offering transactions in local currency.
Q. Could you tell me more about the website?
A. We have made product information and data readily accessible on TI.com. This allows our customers to view important details such as where our products are manufactured, our current inventory levels, and the status of our products—all without needing to rely on anyone else. We have data sheets, product details, and next-generation parts alongside our current offerings, along with reference designs and design guides.
On the commercial side, we have added features such as pricing information, product availability, material content (which some customers find important), and supply chain details. We frequently receive inquiries from both R&D and commercial teams. We also offer TI Learning through the ‘My TI’ platform, which serves as a training facility.
Q. Who is your target customer persona — the R&D professional or the purchase manager?
A. We engage with both. For highly advanced, high-tech applications, the focus tends to be on technology first, with commercial considerations coming in a bit later. On the other hand, commercial proficiency becomes the key focus for the customer’s success for very cost-sensitive applications, often related to consumer products.
In some cases, we conduct joint meetings and discussions, especially when customers are looking at fundamental changes where we can assist on a system level with our portfolio. These ground-up discussions help us identify what needs to change to ensure the customer can perform at the required levels while maintaining attractive costs. These are the types of conversations we have, addressing both technical and commercial aspects.
Q. How do you reach your target customer? What medium do you use to reach your target customer?
A. It is a mix. For some customers, we take a proactive approach and share relevant information as needed. We also engage in technical and commercial discussions with customers to help them solve their problems.
The communication channels vary—it can be phone, face-to-face meetings, or email. Sometimes, we even bring our R&D specialists to meet with certain customers. For newer businesses, we offer a wide variety of events. The in-person, scalable events are complemented by webinars, which are particularly useful for both technical and purchasing topics, helping customers become more familiar with TI’s offerings and direct purchasing options.
Ultimately, the method we choose depends on the customer’s scope of interest and how engaged they are with TI.
Q. When it comes to EVs, what kind of collaborations or partnerships does TI have with EV OEMs and the start-ups that are coming into the EV space?
A. I cannot name specific customers, but we do collaborate extensively. For example, in the two-wheeler space, we engage with all major original equipment manufacturers (OEMs) to understand what is next for them and how we can help bring that to reality. The electrified two-wheeler market is just beginning to take off, and we know that both customer requirements and consumer demands will evolve. Our customers are already anticipating these changes, and we are there to anticipate and provide solutions alongside them.
It is very similar in the four-wheeler space, where we are working with key players to envision the future while keeping it cost-effective and attractive.
Q. Where are you seeing the most demand from — EV two-wheelers, three-wheelers, or four-wheelers — in India?
A. Looking at the market, the electrified two-wheeler space is where we are seeing the most rapid growth, albeit at lower levels initially. India’s market size is enormous, and two-wheelers are clearly leading the charge in electrification.
Three-wheelers and four-wheelers are also growing but at a relatively slower pace. Still, we see promising signs across these segments as well. We have been working with companies and customers in these markets for several years, and what is happening now is that the long-term collaborations we have nurtured are showing tangible success in the market.
Q. What are the hiring trends that TI focuses on in India?
A. We have a strong emphasis on campus hiring. In fact, the majority of our hires, both in India and globally, come directly from universities. Many of our senior executives started at TI, myself included, as well as several members of my team. It all goes back to hiring from campuses and then providing a clear path for these individuals to grow within the company. When it comes to selecting colleges, we focus on institutions that are best suited to providing candidates with the skills they need to succeed in their specific roles.
Q. What kind of skill set are you looking at in India?
A. We primarily look for candidates who have some experience related to the semiconductor or electronics space. We also hire individuals with MBAs, particularly those who have gained technical experience prior to pursuing their MBA.
Q. What is your engagement with start-ups?
A. We have a dedicated team focusing on start-ups. Some of our biggest customers today started as start-ups not too long ago, so we value those relationships deeply. We help start-ups overcome their electronics challenges at a system level, offering reference designs and engaging with universities to support proof of concepts and faster production. Through our broad portfolio and training possibilities, we offer start-ups a strong foundation to grow.