U.S. chipmaker Texas Instruments said demand has cooled after a spike in April that was driven by customers rushing to place orders to get ahead of the “Liberation Day” tariff announcement.
Shares of the company fell nearly 4 per cent on Thursday.
Speaking at the Citi Global TMT Conference, TI finance chief Rafael Lizardi said January-to-April strength was partly due to tariff-induced market dynamics ahead of President Donald Trump’s April 2 tariff announcement.
“But then things did slow down after April, or at least didn’t grow as they normally would have.”
Lizardi also said TI has neither been approached about nor discussed any U.S. government equity stake as a condition of CHIPS Act incentives.
The Trump administration’s move to take a 9.9 per cent equity stake in Intel has raised broader questions about government interference in corporate America, especially after the president said he plans to pursue similar deals.
“Nothing along those lines has been discussed or proposed. We have not been approached on any of that,” Lizardi said.
TI’s agreement – originally signed under the Biden administration and “reworked” with the current one over the past six months – has seen only minor, favorable changes, he said.
“There were little things they wanted to change, but nothing along the lines of what you’re hearing from companies like Intel.”
The U.S. Commerce Department has outlined up to $1.6 billion in funding for TI under the U.S. CHIPS and Science Act.
Lizardi also said free cash flow has been pressured by elevated capital expenditure in recent years. Repurchases have continued but at a slower pace due to capex taking priority.
In July, TI’s quarterly profit forecast failed to impress investors as it pointed to weaker-than-expected demand for its analog chips from some customers.
The company reiterated that four of its five end markets are recovering, with automotive still held back by a slower demand rebound in the auto sector and wider economic uncertainty.
