Chipmaker TI’s rosy forecast soothes tariff worries, for now

Written by Archia Bajwa

(Reuters) -TEXAS Instruments expects the second quarter revenues over Wall Street estimates on Wednesday, with betting on the strong demand for its analog chips even with the threat of American customs duties about the uncertainty in the semiconductor industry.

Outlook, the first from a major American chip maker in this profit season, has sent TI to more than 5 % in post -working hours trading. The stock has decreased by more than 17 % so far this year, as it has declined from macroeconomic tensions and commercial tensions.

Ti expects revenues between $ 4.17 billion and $ 4.53 billion for June quarter, compared to an average estimate of analysts of $ 4.10 billion, according to LSEG data. The share profits are expected to range between $ 1.21 and $ 1.47, as well.

“The recovery of periodic demand and perhaps some of the customs tariffs” leads to optimistic prediction.

However, CEO Haffev Ilan looked at caution. He said in a post -profit call, pointing to the constant uncertainty about the policy of customs tariffs: “We will have to see what is happening” in the second half of 2025 until 2026, noting the constant uncertainty about the customs tariff policy.

While President Trump has now gave semiconductors of additional drawings, Beijing has placed a high tariff on US chips, according to a notification from the main Chinese Association of China earlier in April.

ILAN analysts pressed whether customers were storing chips before expected fees. “I think that at this time, when there is little anxiety, do you want to have more stock on your shelves?” He said.

It may still be very early to ensure the impact of increased fees, the escalation of Chinese -American commercial tensions on the company and the broader chips industry due to suspended tariff negotiations.

China problems

TI, which has a great manufacturing capacity in the United States, usually derives about five annual revenues from China, which makes it vulnerable to constant definitions between Beijing and Washington.

Ilan said that the company could rely on the manufacturing facility in China if necessary.

Old chips makers have worked for years to adopt “China from China from China” policy, where they created FABS in the country to address local demand amid escalating geopolitical tensions.

However, Ti faces intense competition in China, as local chip makers, who are invited by government subsidies, have increased the production of semiconductors.

“The competition in China is intensifying,” Ilan said.

(Participated in the reports of Arsheya Bajwa in Bangaluru; Tahrir by Tasim Zahid)