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TI Installs Automated Warehouse System

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Texas Instruments (TXN - Free Report) or "TI” recently installed the AutoStore inventory management system at its Product Distribution Center (PDC) in Singapore and became the first semiconductor company in Asia to do so.

The AutoStore technology is an automatic warehouse management system, which reduces the amount of space required for inventory. The goods are stored in bins within an aluminium grid structure. The top of the grid is fitted with rails and battery driven robots move along these rails to store and retrieve goods from the bin. The installation includes 63,000 storage bins for Texas Instrument’s products, from which the robots deliver products to operator ports upon request.

TI installed the PDC system at its Singapore factory with the help of its logistics suppliers, DHL and Swisslog.

TI’s factory automation system will benefit its customers with optimal usage of storage space, which is very critical in a warehouse management system. The implementation of this system will provide increased storage and shipping capacity. This automated solution will also facilitate easy access to its inventory and thus make its services more efficient and reliable.

Thus, TI’s constant endeavour to provide a diverse portfolio targeting different applications such as factory automation, smart grid, high-voltage power, LED lighting and control may boost its revenue growth in the future.

In the first quarter of fiscal 2013, TI generated total revenue of $2.89 billion, which was down 3.2% sequentially and 7.6% year over year (slightly better than the mid-point of the recently narrowed guidance range of $2.80 billion to $2.91 billion). The Analog business fell 1.3% sequentially and 2.3% year over year. TI attributed the year-over-year decline primarily to SVA, which continues to shift to a consignment model. HVAL and HPA also declined but were offset by an increase in the power management product line.

Texas Instruments has a Zacks Rank #3 (Hold). Other semiconductor stocks that are worth considering include Linear Technology Corp. , ON Semiconductor Corp. and Intersil Corp. , all carrying a Zacks Rank #2 (Buy).

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