TI Makes Wireless Connection in Rural Areas of China

Rich Templeton, President and Chief Executive Officer of Texas Instruments Incorporated (NYSE: TXN) (TI), today told an audience of handset manufacturers and mobile service operators that “all of us have an important role to play” in helping China connect more people in its rural areas and across the country.

Speaking at a summit of wireless industry leaders, Templeton highlighted the growing opportunities for mobile phones in China and said, “For many people here, when they one day connect to the Internet for the first time, they will experience it through their mobile phones.”

Templeton also affirmed TI’s commitment to the China wireless industry. “As the world’s largest cellular phone market, China’s success is important to Texas Instruments,” he said. “And we are determined to help our customers here innovate, grow their businesses and be more competitive around the world.”

As part of that commitment, TI announced earlier today its new OMAP-Vox(TM) single-chip processor to support GSM/GPRS/EDGE standards. Code named “eCosto,” the new wireless processor combines TI’s single-chip DRPTM technology with the multimedia features of OMAP-Vox platform. TI designed “eCosto” to help customers in China, as well as other regions, serve the need for low-cost multimedia phones. This is TI’s second single-chip mobile phone solution. The first, called “LoCosto” and developed for GSM and GPRS standards, is in volume production today, deployed with 15 low-cost handset manufacturers.

According to In-Stat, China is the world’s largest mobile phone market with 400 million subscribers, and that number is expected to increase to 600 million by 2008. This growth is coming at both the high- and low-ends of China’s handset market. China is now the fastest growing market for lower-priced mobile phones, while its young, urban consumers embrace high-end mobile phones that offer multimedia features, like cameras and MP3 players. TI is addressing the needs of these two markets today with OMAP and “LoCosto” solutions, and with the introduction of “eCosto,” the company is helping handset manufacturers serve the growing mid-tier range with cost-effective, multimedia feature phones.

“The size and diversity of China’s population,” Templeton told summit attendees, “create a consumer market that cannot be served with a ‘one size fits all’ approach. At TI, our goal is to provide our customers in China with products that help them meet the broad range of consumer needs.”

Templeton also discussed TI’s commitment to innovating and integrating for all GSM-based standards, GSM/GPRS, EDGE, WCDMA and TD-SCDMA, noting that “GSM is the leading wireless standard in the world, one that gives consumers greater choice, freedom and flexibility.” Templeton also told the audience, “GSM-based technology enables China handset manufacturers to compete more effectively around the world.”

Templeton concluded his remarks by laying out TI’s strategy. “It’s simple,” he said. “We build our business around our customers, giving them the right products and support to help make them successful. It’s the best way to ensure the growth of China’s wireless industry and to help this country reach its goal of giving more people the ability to connect with more information, more resources and with each other.”