TI points to semiconductor market slowdown

TI points to semiconductor market slowdown

Market news |
By Nick Flaherty

Texas Instruments is pointing to the slowdown in the semiconductor market for analog and logic over the next year in its latest results.

The company reported reduced fourth quarter revenue of $4.67 billion, net income of $1.96 billion and earnings per share of $2.13.

This puts the full year at $20.0bn, up from $18.3bn in 2021. However the forecast for Q1 this year sees a 25% drop on the same quarter last year, consistent with analyst predictions.

“Revenue decreased 11% sequentially and 3% from the same quarter a year ago. As we expected, our results reflect weaker demand in all end markets with the exception of automotive,” said departing CEO Rich Templeton. He is being succeeded by chief operating officer Haviv Ilan in April.

“Our cash flow from operations of $8.7 billion for the year again underscored the strength of our business model. Free cash flow for the year was $5.9 billion and 30% of revenue. This reflects the quality of our product portfolio, as well as the efficiency of our manufacturing strategy, including the benefit of 300mm production.

“Over the past 12 months we invested $3.4 billion in R&D and SG&A, invested $2.8 billion in capital expenditures and returned $7.9 billion to owners,” he said.

The company is ramping up production at at 300mm fabs in Richardson, Texas and in Utah and is building two more fabs in Sherman, Texas.

“TI’s first quarter outlook is for revenue in the range of $4.17 billion to $4.53 billion and earnings per share between $1.64 and $1.90,” down on this quarter and down significantly on the $5.21 billion in the same quarter a year ago during the chip shortage.

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