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FORM 10-K
SVA products
Theseincludeabroadportfolioofindustrial,high-voltagepowermanagement,dataconverter,interfaceandoperationalamplifier
catalogproductsusedinmanufacturingawiderangeofelectronicsystems.SVAproductssupportapplicationslikevideoanddata
interfaceproducts,electricalarc/faultdetectionsystems,andmobilelightinganddisplaysystems.SVAproductsgenerallyhavelonglife
cycles,oftenmorethan10years.SVAconsistsprimarilyofproductsthatweacquiredthroughourpurchaseofNationalSemiconductor
Corporation (National) in 2011.
Embedded Processing
EmbeddedProcessinggenerated$2.7billionofrevenuein2014.EmbeddedProcessingproductsarethe“brains”ofmanyelectronic
devices.Embeddedprocessorsaredesignedtohandlespecifictasksandcanbeoptimizedforvariouscombinationsofperformance,
powerandcost,dependingontheapplication.Thedevicesvaryfromsimple,low-costproductsusedinelectrictoothbrushestohighly
specialized,complexdevicesusedincommunicationsinfrastructureequipment.OurEmbeddedProcessingproductsareusedinmany
markets, particularly industrial and automotive.
AnimportantcharacteristicofourEmbeddedProcessingproductsisthatourcustomersofteninvesttheirownresearchand
development(R&D)towritesoftwarethatoperatesonourproducts.Thisinvestmenttendstoincreasethelengthofourcustomer
relationshipsbecausemanycustomersprefertore-usesoftwarefromoneproductgenerationtothenext.
SalesofEmbeddedProcessingproductsgenerated21percentofourrevenuein2014.Accordingtoexternalsources,themarketfor
embeddedprocessorswas$18billionin2014.Weheldthenumbertwoposition,whichrepresented15percentofthisfragmented
market.Webelievewearewellpositionedtoincreaseourmarketshareovertime.
OurEmbeddedProcessingsegmentincludesthefollowingmajorproductlines:Processor,MicrocontrollersandConnectivity.
Processor products
These include digital signal processors (DSPs) and applications processors. DSPs perform mathematical computations almost
instantaneously to process or improve digital data. Applications processors are typically tailored for a specific class of applications such
ascommunicationsinfrastructureandautomotive(infotainmentandadvanceddriverassistancesystems).Theyarealsosoldintobroad
industrial applications.
Microcontroller products
These include self-contained systems with a processor core, memory and peripherals that are designed to control a set of specific tasks
for electronic equipment. Microcontrollers tend to have minimal requirements for memory and program length, with no operating system
and low software complexity. Analog components that control or interface with sensors and other systems are often integrated into
microcontrollers.
Connectivity products
Theseincludeproductsthatenableelectronicdevicestoseamlesslyconnectandtransferdata,andtherequirementsforspeed,
datacapability,distance,powerandsecurityvarydependingontheapplication.OurConnectivityproductssupportmanywireless
technologiestomeettheserequirements,includinglow-powerwirelessnetworkstandardslikeZigbee®andothertechnologies
likeBluetooth®,WiFiandGPS.OurConnectivityproductsareusuallydesignedintocustomerdevicesalongsideourprocessorand
microcontrollerproducts,enablingdatatobecollected,transmittedandactedupon.
Othergenerated$2.2billionofrevenuein2014andincludes:
• Revenue from our smaller product lines, such as DLP®products(primarilyusedinprojectorstocreatehigh-definitionimages),
certain custom semiconductors known as application-specific integrated circuits (ASICs) and calculators.
• RevenuefromourbasebandproductsandfromourOMAP™applicationsprocessorsandconnectivityproductssoldinto
smartphonesandconsumertablets.Ourexitfromthese“legacywirelessproducts”wascompletedin2013.
• Royalties received for our patented technology that we license to other electronics companies.
We also include in Other items that are not used in evaluating the results of or in allocating resources to our segments. These include
acquisition-related charges; restructuring charges; and certain corporate-level items, such as litigation expenses, environmental costs,
insurance settlements, and gains and losses from other activities, including asset dispositions.