For 2013, TI expects R&D expenses of 1.5 billion (unchanged), capex of 0.5 billion (unchanged), depreciation of $0.9 billion (unchanged) and an annual effective tax rate of 24% (up from previous guidance of 22%). In Summary Texas Instruments is prudently investing its R&D dollars into several high-margin, high-growth areas of the analog and embedded processing markets. This is gradually increasing its exposure to the industrial and automotive markets, while reducing its exposure to the volatile consumer/computing markets. In the last quarter, TI's SVA business saw notable strength, so the strategy is likely paying off. The last few years have also seen other analog companies, such as Linear Technology ( LLTC) and Maxim Interated Products ( MXIM ) increasing focus on industrial and automotive markets. These markets have better secular drivers (energy efficiency in industrial and increasing electronic content in automotive). They also generate higher margins.