Texas Instruments' CFO revealed at an investor conference that the US equivalent tariffs did indeed drive a wave of early customer pickup earlier this year, as orders accelerated growth. However, after the tariff effect receded, the once surging demand cooled down. According to CFO Rafael Lizardi, DeYi's strong performance from January to April this year was partly due to customers placing orders before the tariffs were announced, resulting in a surge in demand. However, after that, demand cooled down. After April, the situation did indeed slow down, at least not growing as usual. Wall Street has been hoping that the analog chip industry can recover, and according to speculation, the industry's revenue has declined by about 25% from its peak. Texas Instruments' profit and revenue performance in the first two quarters of this year were better than expected, but Lizardi's remarks have raised doubts among investors about the prospects for recovery. Mike Beckman, the head of investor relations at Texas Instruments, said, "The impact of tariffs is difficult to separate because there is also a wave of recovery happening at the same time. So, how much each of these factors has played a role?"
This is not the first time that Texas Instruments executives have pointed out that demand may have surged significantly. CEO Haviv Ilian said in July that it is reasonable to assume that customers with insufficient inventory may want to increase their stock due to the possibility of tariffs being imposed. (Demand) has normalized in Q2, and our current daily driving factor is mainly cyclical recovery. Texas Instruments' Q2 revenue was $4.45 billion, a year-on-year increase of 16% and a month on month increase of 9%. Q2 operating profit was $1.56 billion, a year-on-year increase of 25%, and analysts expect $1.47 billion. Expected revenue for the third quarter is between 4.45 billion and 4.8 billion US dollars, with analysts expecting 4.57 billion US dollars. Texas Instruments pointed out at the time that some customers had lower than expected demand for analog chips, and four of its five end markets were recovering. Only the automotive market was still hindered by the easing of demand rebound and broader economic uncertainty. According to Barron's Weekly analysis, Texas Instruments' current message to investors is that, apart from the automotive sector, a widespread recovery in overall demand has begun, but it will still take some time to fully grasp the full impact of tariffs.
Due to the US's investment in Intel in early August and its consideration of applying this "equity for subsidy" policy to other companies, concerns have arisen about whether it will intervene in the US business world. Chief Financial Officer Rafael Lizardi responded that Texas Instruments has not discussed American investment as a condition for obtaining chip subsidies. :We have not discussed or proposed anything similar. We have also not had any contacts in this regard"
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