TI adds ARM Cortex feather on its fading MCU crown

Texas Instruments has acquired small but well-known microcontroller vendor Luminary Micro. Luminary Micro has created new dimensions in 32-bit microcontroller market by launching highly affordable ARM Cortex based microcontrollers and also low cost microcontroller development kits.
For long time, TI was not gaining market share in Microcontrollers. With the line between Digital Signal Processor (DSP) and Microcontroller (MCU) is almost fully blurred, this acquisition is a very smart move by TI. It has acquired highly complementing product line, which enriches Texas Instrument's MCU product line.

Luminary's ARM Cortex based 32-bit MCUs branded has Stellaris family of MCUs are now part of TI's broad ranges of DSPs and MCUs.

This acquisition has made ARM feel happier than anybody else in the industry. Here are their executive comments.

Mike Inglis, Executive Vice President and general manager of ARM Processor Division said,
"Luminary Micro was the first licensee of the innovative Cortex-M3 processor and has to date introduced a wide range of Cortex-M3 microcontrollers winning many significant designs. The acquisition by TI is a clear demonstration of the growing momentum behind the Cortex-M3 processor in the MCU market and the strides that Luminary has made."

Reinhard Keil, Director of MCU tool ARM said,
"TI and Luminary are both significant players in the MCU market with complementary strengths and this acquisition will take the Cortex-M3 processor into a broader range of markets."

Jim Reinhart, general manager and former Luminary Micro CEO will lead the combined ARM MCU business with office at Austin, Texas. The amount paid by TI to acquire Luminary is not yet disclosed. Both might have done hard-bargain on the amount during this recession period.

The total microcontroller market is expected to reach $12.1 billion in revenue by year 2010, according to World Semiconductor Trade Statistics (WSTS). The 32-bit market share in the total microcontroller market is growing compared to 16-bit and 8-bit.

Recently world's number 1 MCU vendor Renesas and number 3 vendor NEC Electronics have announced plans to merge their businesses.

We foresee some more shakeup in the microcontroller market in 2009 and 2010.