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Texas Instruments Warns of Cooling Demand After Tariff-Driven Surge

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Texas Instruments (TXN.O) said on Thursday that customer demand has slowed following a sharp spike in April, when buyers rushed to place orders ahead of U.S. President Donald Trump’s “Liberation Day” tariff announcement. Shares of the chipmaker fell nearly 4% after the update, delivered at the Citi Global TMT Conference by Chief Financial Officer Rafael Lizardi.

Lizardi explained that January-to-April demand was temporarily lifted by tariff-related market dynamics but noted that “things did slow down after April, or at least didn’t grow as they normally would have.”

The finance chief also addressed speculation about potential government stakes in semiconductor firms, clarifying that TI has not been approached about equity participation in exchange for CHIPS Act incentives. The Trump administration’s decision to take a 9.9% stake in Intel (INTC.O) has fueled debate about government involvement in the industry, but Lizardi said, “Nothing along those lines has been discussed or proposed” for TI.

Under the CHIPS and Science Act, the Commerce Department has earmarked up to $1.6 billion in funding for Texas Instruments. Lizardi said the agreement, initially signed under the Biden administration and later adjusted under Trump, saw only “minor, favorable changes.”

TI’s free cash flow remains under pressure from elevated capital expenditure, with share repurchases continuing but at a reduced pace. In July, the company issued a profit forecast that signaled weaker-than-expected demand for its analog chips, particularly from the automotive sector, which has been slow to rebound. Despite challenges, TI reiterated that four of its five end markets are showing recovery, with autos lagging due to broader economic uncertainty.

Apple Supplier Skyworks Solutions Forecasts Strong Q4 Results on Robust Chip Demand

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Skyworks Solutions (SWKS.O), a key Apple supplier, projected fourth-quarter revenue and profit above Wall Street estimates on Tuesday, driven by sustained demand for its analog chips despite economic uncertainties. The company’s shares rose about 10% in extended trading.

CEO Phil Brace highlighted positive momentum in mobile markets and steady demand across sectors including edge IoT, automotive, and data centers. Skyworks designs and manufactures analog and mixed-signal chips used widely in wireless communications, automotive, industrial, and consumer electronics.

For the fourth quarter, Skyworks expects revenue between $1 billion and $1.03 billion, significantly higher than analyst estimates of $887.4 million. Adjusted earnings per share are forecast at $1.40, outperforming expectations of 97 cents per share.

In the third quarter ended June 27, Skyworks reported revenue of $965 million, beating estimates of $940.9 million. However, profit per share declined to 70 cents from 75 cents a year earlier. The company also recently appointed Robert Schriesheim as interim finance chief after a change in leadership plans earlier this year.

Texas Instruments to Invest $60 Billion in U.S. Chip Manufacturing Amid Political Pressure

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Texas Instruments (TI) announced plans on Wednesday to invest over $60 billion to expand its semiconductor manufacturing facilities in the United States. This move comes amid ongoing pressure from the Trump administration to reshore the country’s semiconductor supply chain.

The Biden administration finalized a $1.61 billion subsidy for TI in December to support the construction of three new facilities, part of the broader $52.7 billion CHIPS and Science Act. TI’s investment plan includes building or expanding seven chip-making plants across Texas and Utah, with two new sites planned in Sherman, Texas. The company said this investment would create 60,000 jobs, calling it the largest foundational semiconductor manufacturing investment in U.S. history.

TI expects to spend up to $40 billion on its Sherman operations and approximately $21 billion on facilities in Utah and other parts of Texas. While no exact timeline was provided, TI confirmed its long-term capital expenditure plans remain unchanged.

Unlike AI-focused chipmakers Nvidia and AMD, TI specializes in analog chips used in everyday electronics such as smartphones, cars, and medical devices. This gives TI a broad client base, including Apple, SpaceX, and Ford.

The $60 billion investment follows similar announcements from other semiconductor companies. For example, Micron recently revealed it would increase its U.S. investment by $30 billion, bringing its total planned spending to $200 billion.

Some analysts interpret these spending announcements as efforts to gain favor with former President Donald Trump, who has threatened to block the CHIPS Act funding and impose tariffs on semiconductor imports.

U.S. Commerce Secretary Howard Lutnick praised the investment, stating it would support “foundational semiconductors that go into the electronics people use every day” and sustain U.S. chip manufacturing for decades.

TI’s announcement also includes previously allocated funds for facilities already under construction or scaling up production.