Texas Instruments outlook for the third quarter is depressed, and customers from all walks of life are cutting orders

    Financial report data shows that in the second quarter, Texas Instruments‘s revenue was 4.53 billion US dollars (currently about 32.344 billion yuan), down 13% year on year, but exceeded analysts‘ expectations of 4.35 billion US dollars. In the second quarter, it achieved a profit of $1.87 per share, significantly lower than the $2.45 per share in the second quarter of last year.

    Texas Instruments predicted that the revenue in the third quarter would be between $4.36 billion and $4.74 billion, and the median value of this prediction range was lower than the average expectation of Wall Street analysts of $4.59 billion. This adverse news led to a 4% drop in Texas Instruments‘s share price in after hours trading.

    Texas Instruments is considered as a "barometer company" in the semiconductor market. Its performance outlook for the third quarter also indicates that the whole semiconductor industry is still suffering.

    Among the semiconductor industry, Texas Instruments has the longest customer list and the richest product catalog. The company‘s profitability and performance outlook can reflect the health of many macroeconomic fields. Among them, the largest revenue segment of Texas Instruments comes from the sales of electronic devices to industrial machinery and vehicle manufacturers.

    Although the company‘s analog chips have simple functions, they are very important in the industrial field, such as chips for measuring button pressure or chips for detecting temperature changes. The company‘s chips are also used to control electric motors in various scenarios (such as space equipment to household appliances), and compared to chips in other digital products, these analog chips do not require state-of-the-art manufacturing processes.

    Haviv Ilan, CEO of Texas Instruments, said that in the second quarter, chips in the automotive industry became a bright spot, but sales of other products were sluggish. "As in the previous quarter, except for the automotive industry, we experienced sluggish demand in all terminal markets."

    In the analyst conference call, Texas Instruments executives said that customers in other industries except the automotive industry continued to cut chip orders, and they wanted to consume existing inventory first.

    Rafael Lizard, chief financial officer of Texas Instruments, said that customers cut orders, leading to the increase of Texas Instruments‘s own chip inventory. At present, the inventory has climbed to 207 days, and the value of inventory goods in the third quarter will continue to rise.

    Lizard also said that unlike other chip manufacturers, Texas Instruments‘s analog chips have a long shelf life (even up to 10 years), so the current high inventory can solve the sudden increase in market demand in the future.

    In an interview, Lizard said, "Our inventory of chips can be stored for a long time. These chips can be stored for 10 years and taken out