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Texas Instruments: Demand Returns To Consumer Electronics And Automotive
21.10.2021 [08:36],
Alexey Razin

The American “veteran” of the market, Texas Instruments, supplies semiconductor components to about hundreds of thousands of customers, so its quarterly reports make it possible to judge the state of the world economy with high reliability. At the last event, company representatives said that demand has returned to the consumer electronics and automotive sectors.

Image source: Bloomberg

Recall that many market players since spring have complained about the decline in demand from car manufacturers. Consumers not only postponed the purchase of new cars until more predictable times, but also banally began to move less due to restrictions under the self-isolation regime. Texas Instruments, which recovered about the same amount in the third quarter as a year ago ($ 3.82 billion), announced a return of demand for semiconductor components from the automotive industry to last year’s level. Automotive factories in the US and Europe have resumed operations, so demand for Texas Instruments products has begun to return to levels from the same period last year.

At the same time, the revenue of the company was supported by the consumer electronics segment – TVs and “smart” speakers were in demand, which help to while away the time in self-isolation. Texas Instruments CFO Rafael Lizardi saw fit to state that the global economy is far from normal. “Long-term trends are not alarming, but this does not mean that in the next two or three quarters we cannot face dips in demand,” he added.

Last quarter Texas Instruments stopped supplying components to Chinese company Huawei Technologies. This customer accounted for no more than 2% of the total revenue of the American manufacturer in the third quarter. In the fourth quarter, the profile part of revenue will reach zero. In the current reporting period, the company expects to generate from $ 3.41 to $ 3.69 billion, which is higher than the expectations of industry analysts. Stock price Texas Instruments against this background rose by one percent after the publication of quarterly reports.

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