The combination of these two companies will represent about 17% of the power management and driver IC market, or $2.2 billion in revenue.  The two companies' share of the LED IC market will stand at more than 25%.      

IMS Research senior power analyst Ryan Sanderson commented: “Assuming that the deal is waived through by the regulators, TI, once it completes the acquisition and integration of National, would have just over twice the market share of #2 ranked Infineon, assuming previous years' results.”      

Within the power management area, TI has a strong position in areas such as switching controllers and battery management. Meanwhile, National is strong in areas such as voltage regulation ICs. As a result, the combined company will have a very strong position across a wide range of power IC products.      

The merger will also consolidate the two companies' leadership positions in some emerging areas such as LED driver ICs. IMS Research ranked TI and National #1 and #2 respectively in 2010 and the combined share of the new company is estimated at 26%. Jamie Fox, senior LED lighting analyst at IMS Research, commented: “We estimate that TI held around 19% of this market in 2010, whilst National took 7%. The new combined company will be four times bigger than its nearest competitor in this high growth market, which was worth nearly $1 billion in 2010”.      

Prior to the acquisition, TI had been successful in several high volume markets such as mobile, signage and lighting. National was also strong in mobile as well as operating in other sectors such as automotive and lighting.     

IMS Research's market share numbers are drawn from two reports: The LED Driver IC market 2011 and the Power Management and Driver IC market 2011. Both will be published shortly.     

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