This IDC Flash analyzes the recent news from Texas Instruments (TI) and assesses the future impact on Texas Instruments and the wireless semiconductor industry in general. On October 20, 2008, Texas Instruments announced its 3Q08 financial results, which revealed rapidly deteriorating semiconductor demand overall and significant changes and restructuring for its wireless chipset business over the upcoming quarters. TI acted on its cautious outlook by reducing its foundry utilization by 10% during the quarter to draw down channel inventory levels in anticipation of continued slow demand. TI expects that the fourth quarter will see a 10% decline in revenue on a quarter-on-quarter basis, including its calculator business. Most surprisingly, TI announced that with its restructuring plans, it will seek to sell its merchant baseband processor business and focus on applications processors in the smartphone and feature phone segments, and thereby improve margins and focus longer term on the analog and embedded processing businesses, which offer higher potential top-line growth and stronger overall margins.