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Texas Instruments admits defeat, moves focus away from smartphone processors

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In a major shift, TI plans to drop smartphone development for its OMAP processors

Gallery Photo: Amazon's 7-inch Kindle Fire HD hands-on pictures
Gallery Photo: Amazon's 7-inch Kindle Fire HD hands-on pictures

Chipmaker Texas Instruments (TI) has announced a major shift in its business strategy, moving away from consumer electronics devices such as smartphones and tablets and towards embedded applications such as computer systems in cars. Speaking at an investor meeting on Tuesday, VP for embedded processing Greg Delagi described the consumer electronics market as "less attractive as we go forward," according to a report from Reuters.

The announcement comes as TI's OMAP platform continues to lose ground to rivals such as Qualcomm and Nvidia. While OMAP processors are still used in some high-profile devices such as Amazon's Kindle Fire HD, shown above, recent flagship smartphones from companies such as HTC, Motorola, and Nokia have favored Qualcomm's Snapdragon S4 chip. As Reuters points out, major manufacturers such as Samsung and Apple are also increasingly capable of designing their own bespoke processors, contracting the fabrication out to firms such as Taiwan Semiconductor Manufacturing Company (TSMC).