Richard Templeton, chairman, president and CEO of Texas Instruments Inc., speaks during a hearing of the Committee on Science, Space and Technology in Washington, DC, U.S., on Wednesday, February 6, 2013. The hearing was titled ‘U.S. competitiveness: The role of research and development.”
Andrew Harer | Bloomberg | Getty Images
Texas Instruments on Thursday announced that its CEO of nearly 19 years, Rich Templeton, will step down on April 1 as Haviv Ilan, its chief operating officer, replaces him. Templeton will remain executive chairman of the chip maker. Shares of Texas Instruments were flat in extended trading after the disclosure.
The 92-year-old company described the change as a “well-planned succession” in a statement. But Texas Instruments executed a similar plan in 2018 that backfired. The company said Templeton would step down to make way for its chief operating officer at the time, Brian Crutcher, in what it also called a “well-planned succession”. A month after the CEO change, Crutcher is said to have left and Templeton is back in the lead role.
“Crutcher resigned due to violations of the company’s code of conduct,” Texas Instruments said at the time. “The violations are related to personal conduct that is inconsistent with our ethics and core values, but not related to company strategy, operations, or financial reporting.”
Under Templeton’s leadership, which began on May 1, 2004, shares of Texas Instruments rose 581%, surpassing VanEck Semiconductor exchange-traded fund, which is up 549% over the same period. Templeton took over as CEO from Tom Engibus, who held the position for nearly eight years.
Ilan arrived at Texas Instruments in 1999 through the acquisition of the Israeli wireless company Butterfly. Prior to becoming COO at Texas Instruments, he was Senior Vice President of the Analog Signal Chain and High Performance Analog Divisions.
Texas Instruments posted $2.3 billion in net income on $5.24 billion in revenue for the quarter ended Sept. 30, representing about 18% growth in earnings and 13% growth in revenue. Most revenue comes from sales of analog products, including chips that change signals to data so other chips can work. Over a third of revenue comes from industry categories such as energy, healthcare and defense.
Correction: An earlier version of this story misspelled the new CEO’s name in the headline. This is Haviv Ilan.
WATCHING: Bernstein’s Stacey Rasgon says Texas Instruments has weathered pandemic losses