NEW YORK (Reuters) - The chief executive of Texas Instruments <TXN.O> told investors that the company's wireless application chip business would be increasingly important for the chip maker, which is currently shuttering another wireless chip business.
TI shares were down 2 percent after the CEO's comments. Some analysts are worried about a remaining TI wireless business -- its OMAP application chips -- because it is cost intensive and faces increasingly stiff competition.
But CEO Richard Templeton suggested that he is nowhere near ready to give up on the business, and talked about trends that could lead to strong growth prospects for OMAP.
"I think it is a highly intriguing opportunity in terms of where we are and what our opportunity is," Templeton said during a webcast of the company's investor meeting.
He explained that TI had given up on the company's mobile baseband chips -- the chip that connects cellphones to the wireless network -- because it did not make sense for TI to compete in that market.
TI looks critically at each of its business units in this way, according to Templeton: "If they don't make sense over the long term we'll do something different."
But he added that TI doesn't "have a public or private time frame for what we're going to do with OMAP."
TI shares closed down 70 cents or 2.2 percent at $31.39 on Nasdaq after the presentation.
(Reporting by Sinead Carew; Editing by Phil Berlowitz)