Texas Instruments acquires National Semiconductor

CRA economists advised counsel to Texas Instruments during the FTC review of its $6.5 billion acquisition of National Semiconductor. CRA consultants analyzed the product portfolios of the two firms, demonstrating that the merging firms manufactured complementary semiconductor products, not substitutes. According to industry trade analysts, the two firms were thought to have substantial overlaps in analog semiconductors, with Texas Instruments and National Semiconductor being ranked first and second in these particular product categories. The combined firm will have nearly 45,000 analog products; however CRA economists showed in their analysis that while the analog market is a complicated product space with thousands of products, it is common for industry analysts to aggregate products that are not substitutes. In areas where there were overlaps, CRA’s economists explained why it would be relatively easy for remaining competitors to reposition themselves in the market as the products serve different purposes.