US chip giant Texas Instruments says it is stepping back from the smartphone market in a bid to focus on more “stable” business lines.

According to Reuters, TI used an investor meeting this week to announce plans to shift investment in its chip business from wireless devices to new embedded sectors such as the auto industry – prompting speculation that TI could exit the smartphone market entirely.
 
"We believe that opportunity is less attractive as we go forward," Greg Delagi, TI's senior vice-president for embedded processing, said during the meeting.

He added that growth in the embedded space will be slower than in the high-growth wireless market but would "generate a more stable, profitable long-term business" than wireless.

TI’s chips are used in Amazon’s Kindle and the firm said it would continue to support existing customers.

The Dallas-based firm is thought to have lost ground recently in this space to larger rivals such as Qualcomm – and has also suffered due to major smartphone vendors such as Apple and Samsung choosing to develop their own chips in-house.