Latest news with #HavivIlan
Yahoo
4 hours ago
- Business
- Yahoo
Texas instruments Commits to $60 Billion Investment for 7 US Chip Plants
Texas Instruments gave its US manufacturing capabilities a huge boost with the announcement of a new $60 billion investment. As the White House has pushed chipmakers to bring manufacturing to the US, several industry leaders, including Apple, Micron, Nvidia, and TSMC, have announced significant investments, both in new projects and construction already underway. TI has plants in various stages of construction in Utah and Texas. Unlike Micron and TSMC, which are known for building ever-smaller, bleeding-edge nodes, TI focuses on foundational chips. As Reuters notes, TI builds chips for a range of industries. It is also well known for its calculators, which are a staple for high school and college classes and college entrance exams. Credit: Texas Instruments 'Ti is building dependable, low-cost 300mm capacity at scale to deliver the analog and embedded processing chips that are vital for nearly every type of electronic system,' said Haviv Ilan, president and CEO of TI, in a statement. 'Leading US companies such as Apple, Ford, Medtronic, Nvidia, and SpaceX rely on TI's world-class technology and manufacturing expertise, and we are honored to work alongside them and the US government to unleash what's next in American innovation.' At this point, TI has two fabs in Lehi, Utah, two in Richardson, Texas, and two in Sherman, Texas, with two more planned. Lehi's LFAB1 fab produces 300mm wafers, while LFAB2 is under construction. Both of the fabs in Richardson are producing wafers, though RFAB2 hasn't yet reached full production. Meanwhile, Sherman's massive fab cluster is just getting started. Fab SM1 is expected to start production this year. TI says that construction is done on the exterior of Fab SM2. According to TI, the three fab sites will eventually support more than 60,000 jobs. Credit: Texas Instruments The White House is considering large tariffs for semiconductors, which is likely playing a significant role in the flurry of investment announcements we've seen from chipmakers over the past few months. Several companies have sent letters to the Commerce Secretary to argue against tariff moves that could hurt their business. Some, like TSMC, have argued that the tariffs could put enough strain on their revenue to undermine the construction efforts they have underway in the US. Although today's announcement marks TI's biggest investment in manufacturing facilities in the US, the company also made commitments prior to this year. In 2024, it secured approval of a $1.61 billion subsidy from the CHIPS Act and announced plans to invest as much as $18 billion then.
Fast Company
2 days ago
- Business
- Fast Company
Texas Instruments' $60 billion chip pledge sounds bold—but the U.S. still has work to do
More than $60 billion of investment will be spent by Texas Instruments to build and expand seven semiconductor factories in the United States, creating more than 60,000 jobs in the country, the company said today. The announcement, which will see the investment spent across seven semiconductor fabrication sites, is a boost for President Donald Trump, though it is not exactly new cash, some experts argue. 'I think it's exactly what they've been saying for the last four or five years,' says Stacy Rasgon, a senior analyst at Bernstein who covers semiconductors. 'They're probably one of the few that's actually put massive amounts of dollars in the ground in the U.S. already. So you might as well get credit for it.' The announcement also does not include a time frame. Texas Instruments CEO Haviv Ilan said in a statement: 'TI is building dependable, low-cost 300-millimeter capacity at scale to deliver the analog and embedded processing chips that are vital for nearly every type of electronic system.'
Malaysian Reserve
2 days ago
- Automotive
- Malaysian Reserve
Texas Instruments plans to invest more than $60 billion to manufacture billions of foundational semiconductors in the U.S.
Leading U.S. companies Apple, Ford, Medtronic, NVIDIA and SpaceX strengthen partnerships with TI to unleash the next era of American innovation NEWS HIGHLIGHTS: More than $60 billion investment includes seven U.S. semiconductor fabs across three manufacturing mega-sites in Texas and Utah supporting more than 60,000 new U.S. jobs Largest investment in foundational semiconductor manufacturing in U.S. history, building on TI's almost-100-year legacy TI's largest mega-site in Sherman, Texas includes investment of up to $40 billion dollars for four fabs: SM1 and SM2 – already underway – and two additional fabs, SM3 and SM4 Leverages TI's strengths as a global technology and manufacturing leader to advance critical innovations from vehicles to smartphones to data centers DALLAS, June 18, 2025 /PRNewswire/ — Texas Instruments (TI) (Nasdaq: TXN) today announced its plans to invest more than $60 billion across seven U.S. semiconductor fabs, making this the largest investment in foundational semiconductor manufacturing in U.S. history. Working with the Trump administration and building on the company's nearly 100-year legacy, TI is expanding its U.S. manufacturing capacity to supply the growing need for semiconductors that will advance critical innovations from vehicles to smartphones to data centers. Combined, TI's new manufacturing mega-sites in Texas and Utah will support more than 60,000 U.S. jobs. 'TI is building dependable, low-cost 300mm capacity at scale to deliver the analog and embedded processing chips that are vital for nearly every type of electronic system,' said Haviv Ilan, president and CEO of Texas Instruments. 'Leading U.S. companies such as Apple, Ford, Medtronic, NVIDIA and SpaceX rely on TI's world-class technology and manufacturing expertise, and we are honored to work alongside them and the U.S. government to unleash what's next in American innovation.' 'For nearly a century, Texas Instruments has been a bedrock American company driving innovation in technology and manufacturing,' said U.S. Secretary of Commerce, Howard Lutnick. 'President Trump has made it a priority to increase semiconductor manufacturing in America – including these foundational semiconductors that go into the electronics that people use every day. Our partnership with TI will support U.S. chip manufacturing for decades to come.' Unleashing what's next in American innovation Today, TI is the largest foundational semiconductor manufacturer in the U.S., producing analog and embedded processing chips that are critical for smartphones, vehicles, data centers, satellites and nearly every other electronic device. In order to meet the steadily growing demand for these essential chips, TI is building on its legacy of technology leadership and expanding its U.S. manufacturing presence to help its customers pioneer the next wave of technological breakthroughs. Igniting intelligence with Apple 'Texas Instruments' American-made chips help bring Apple products to life, and together, we'll continue to create opportunity, drive innovation, and invest in the future of advanced manufacturing across the U.S.,' said Apple's CEO Tim Cook. Fueling the future with Ford Ford and TI are working to strengthen American manufacturing, combining Ford's automotive expertise with TI's semiconductor technology to help drive innovation and secure a robust, domestic supply chain for the future of mobility. 'At Ford, 80% of the vehicles we sell in the U.S. are assembled in the U.S., and we are proud to stand with technology leaders like TI that continue to invest in manufacturing in the U.S.,' said Jim Farley, President and CEO of Ford Motor Company. Connecting patient care with Medtronic Medtronic and TI are partnering to improve lives when it matters most. 'At Medtronic, our life-saving medical technologies rely on semiconductors to deliver precision, performance, and innovation at scale,' said Geoff Martha, Medtronic chairman and CEO. 'Texas Instruments has been a vital partner – especially during the global chip shortages – helping us maintain supply continuity and accelerate the development of breakthrough therapies. We're proud to leverage TI's U.S.-manufactured semiconductors as we work to transform healthcare and improve outcomes for patients around the world.' Advancing AI with NVIDIA NVIDIA is partnering with TI to unleash the next generation of artificial intelligence architectures. 'NVIDIA and TI share the goal to revitalize U.S. manufacturing by building more of the infrastructure for AI factories here in the U.S.,' said Jensen Huang, founder and CEO of NVIDIA. 'We look forward to continuing our collaboration with TI by developing products for advanced AI infrastructure.' Securing high-speed satellite internet with SpaceX SpaceX is increasingly leveraging TI's high-speed process technology to connect its Starlink satellite internet service with TI's latest 300mm SiGe technology manufactured in Sherman, Texas. 'Our fundamental mission is to revolutionize global connectivity and eliminate the digital divide. Core to this mission is constantly pushing the boundaries of what is possible,' said Gwynne Shotwell, president and COO of SpaceX. 'SpaceX is manufacturing tens of thousands of Starlink kits a day – all right here in the U.S. – and we are making huge investments in PCB manufacturing and silicon packaging to expand even further. TI's U.S.-made semiconductors are crucial for securing a U.S. supply chain for our products, and their advanced silicon manufacturing capabilities provide the performance and reliability needed to help us meet the growing demand for high-speed internet all around the world.' Backed by the strength of TI's U.S. manufacturing presence TI is a driving force behind the return and expansion of semiconductor manufacturing in the U.S. The company's more than $60 billion investment in U.S. manufacturing includes building and ramping seven, large-scale, connected fabs. Combined, these fabs across three manufacturing mega-sites in Texas and Utah will manufacture hundreds of millions of U.S.-made chips daily that will ignite a bold new chapter in American innovation. Sherman, Texas: SM1, TI's first new fab in Sherman will begin initial production this year, just three years after breaking ground. Construction is also complete on the exterior shell of SM2, TI's second new fab in Sherman. Incremental investment plans include two additional fabs, SM3 and SM4, to support future demand. Richardson, Texas: TI's second fab in Richardson, RFAB2, continues to ramp to full production and builds on the company's legacy of introducing the world's first 300mm analog fab, RFAB1, in 2011. Lehi, Utah: TI is ramping LFAB1, the company's first 300mm wafer fab in Lehi. Construction is also well underway on LFAB2, TI's second Lehi fab that will connect to LFAB1. Learn more Press kit (includes images, video b-roll and fact sheet) Additional press kits (Sherman, Texas, Lehi, Utah, and Richardson, Texas) About Texas Instruments Texas Instruments Incorporated (Nasdaq: TXN) is a global semiconductor company that designs, manufactures, and sells analog and embedded processing chips for markets such as industrial, automotive, personal electronics, communications equipment and enterprise systems. At our core, we have a passion to create a better world by making electronics more affordable through semiconductors. This passion is alive today as each generation of innovation builds upon the last to make our technology more reliable, more affordable and lower power, making it possible for semiconductors to go into electronics everywhere. Learn more at
Yahoo
28-04-2025
- Business
- Yahoo
Why Wolfspeed Rocketed 27% Higher (Again) on Monday
Shares of silicon carbide chipmaker Wolfspeed (NYSE: WOLF) rocketed 26.9% on Monday. The move follows on a big up day last Wednesday as well. Wolfspeed doesn't report earnings until May 8, and there wasn't any especially relevant company-specific news today. However, the beginning of earnings season has spurred some cautious optimism that Wolfspeed's end markets might be recovering. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » With such a sky-high short interest of 41% of shares outstanding and 64% of Wolfspeed's float as of April 15, it appears as though many short sellers have decided -- or have been forced -- to close out their positions, leading to a "short squeeze." Wolfspeed has spent billions of dollars and taken on significant debt in order to build out silicon carbide (SiC) manufacturing capacity in the U.S. SiC is a difficult material to work with, but it also makes for a more conductive chip, which is especially useful in high-voltage, high-temperature applications like electric vehicles (EV) and other industrial infrastructure. While a strong industrial and auto market seems far-fetched in light of the administration's tariff policies, industrial and auto chips have actually already been in a protracted downturn ever since interest rates shot up at the end of 2022 and into 2023. Starting in 2023, the industrial chip market saw seven straight quarters of declines. Over that time, Wolfspeed's stock has cratered under the weight of its ambitious investments and tepid demand. The stock cratered another 47% in March after it was suspected the company might not receive its expected $750 million in CHIPS Act money. However, last week on April 23, chip giant Texas Instruments (NASDAQ: TXN), which also has a high concentration in auto and industrial markets, noted it was seeing a "broad recovery across sectors and geographies," with low inventories across all end markets. Also encouraging was that TI executive Haviv Ilan said he believed the recovery was real and not just a pull-in to get ahead of impending tariffs. While Texas Instruments doesn't make SiC chips as Wolfspeed does, it is known as somewhat of a bellwether in the industrial and auto chip markets. Thus, Wolfspeed's stock took off the next day on Wednesday of last week, and the rally held up through Friday. So why the spike today? It's hard to say, but there's the potential that some hedge funds may have received margin calls over the weekend from banks and were therefore forced to close out more of their short positions by buying the stock back today. Despite the past week's massive short squeeze that has lifted Wolfspeed's shares some 65% off of their lows to begin last week, investors should not take this as an "all clear." Wolfspeed is still heavily indebted, and it may not receive the promised CHIPS Act money, which could stress the company despite signs of an end-market recovery. Moreover, Wolfspeed has appointed a new CEO, who will begin his tenure this week on May 1. A new company head adds even more uncertainty. There are other automotive/industrial chip plays with much less risk than Wolfspeed at the moment and which should also see a big upside if a recovery materializes. Investors would take much less risk with one of Wolfspeed's profitable rivals, rather than this loss-making meme stock, which is more like a lottery ticket at this point. Before you buy stock in Wolfspeed, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Wolfspeed wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $594,046!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $680,390!* Now, it's worth noting Stock Advisor's total average return is 872% — a market-crushing outperformance compared to 160% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 28, 2025 Billy Duberstein and/or his clients have positions in Texas Instruments. The Motley Fool has positions in and recommends Texas Instruments and Wolfspeed. The Motley Fool has a disclosure policy. Why Wolfspeed Rocketed 27% Higher (Again) on Monday was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
26-04-2025
- Business
- Yahoo
TXN Q1 Earnings Call: Industrial Recovery and Tariff Risks Shape Outlook
Analog chip manufacturer Texas Instruments (NASDAQ:TXN) beat Wall Street's revenue expectations in Q1 CY2025, with sales up 11.1% year on year to $4.07 billion. The company expects next quarter's revenue to be around $4.35 billion, close to analysts' estimates. Its GAAP profit of $1.28 per share was 20.2% above analysts' consensus estimates. Is now the time to buy TXN? Find out in our full research report (it's free). Revenue: $4.07 billion vs analyst estimates of $3.91 billion (11.1% year-on-year growth, 4.1% beat) EPS (GAAP): $1.28 vs analyst estimates of $1.06 (20.2% beat) Adjusted EBITDA: $1.77 billion vs analyst estimates of $1.66 billion (43.5% margin, 6.2% beat) Revenue Guidance for Q2 CY2025 is $4.35 billion at the midpoint, roughly in line with what analysts were expecting EPS (GAAP) guidance for Q2 CY2025 is $1.34 at the midpoint, beating analyst estimates by 11.9% Operating Margin: 32.5%, down from 35.1% in the same quarter last year Free Cash Flow was -$274 million compared to -$231 million in the same quarter last year Inventory Days Outstanding: 243, in line with the previous quarter Market Capitalization: $148 billion Texas Instruments' first quarter results reflected improvement across key end markets, particularly in industrial and automotive. Management attributed the revenue growth to broad-based recovery, with CEO Haviv Ilan noting, 'We continue to see recovery across our end markets, with industrial showing broad recovery across sectors and geographies.' The company also highlighted that customer inventories are at low levels, which contributed to stronger ordering activity and sequential growth in both Analog and Embedded Processing segments. Looking ahead, management's guidance for the next quarter remains cautious due to ongoing global uncertainty, including tariffs and geopolitical risks affecting supply chains. Ilan emphasized the unpredictable environment, stating, 'We remain cautious as there are many things still changing, and we are working with our customers to understand and support their needs.' The company is preparing for multiple market scenarios and will continue to focus on dependable capacity and supply chain flexibility to address customers' evolving requirements. Management focused on the interplay between broad market recovery and ongoing uncertainty driven by tariffs and supply chain volatility. The quarter's performance benefited from industrial sector strength, while the company's operational flexibility was highlighted as a core advantage. Industrial Market Recovery: Industrial end markets showed broad-based sequential and year-over-year growth, ending a seven-quarter decline. Management described customer orders as reflecting genuinely improved demand rather than one-off or anxious purchasing. Low Customer Inventories: Executives noted that customers across all end markets are running lean on inventory, increasing the likelihood of replenishment orders and contributing to recent revenue gains. Tariff and Geopolitical Impact: Management discussed the challenges posed by new tariffs and evolving trade policies, emphasizing the need for "geopolitically dependable capacity" and the company's ability to shift manufacturing and logistics to support customers globally. Operational Flexibility: Texas Instruments outlined its manufacturing footprint, including dual-sourcing capabilities and rapid logistics adaptation, as a key factor in maintaining customer support despite changing external conditions. Competitive Dynamics in China: Leadership acknowledged intensifying competition from Chinese firms, particularly in complex, application-specific analog products, but asserted that Texas Instruments' portfolio breadth and supply chain dependability remain differentiators. Management's outlook for the coming quarters centers on ongoing industrial recovery, the company's flexible manufacturing approach, and the risks posed by tariffs and global supply chain shifts. Continued Industrial Demand: The industrial segment is expected to remain a growth driver as customers maintain low inventories and replenish stock, but management cautions that this trend could shift if economic anxiety increases. Tariff and Supply Chain Uncertainty: New and potential tariffs create risks for both revenue predictability and cost structure. The company's ability to shift production and logistics is positioned as a partial mitigation, but management acknowledges that further changes are possible. Competitive Pressures: Intensifying competition in China, especially from local analog chipmakers, represents an ongoing risk. Management believes Texas Instruments' diverse product offering and manufacturing scale will help defend its market share, but the landscape remains dynamic. Timothy Arcuri (UBS): Asked about the impact of tariffs and whether recent order strength reflected pull-ins. CEO Haviv Ilan clarified that industrial growth appeared consistent and broad-based, not a result of anxious buying ahead of tariffs. Vivek Arya (Bank of America Securities): Queried inventory trends and gross margin direction. CFO Rafael Lizardi said gross margin outperformed expectations due to higher revenue and a greater mix of industrial sales, with factory loadings expected to increase modestly next quarter. Stacy Rasgon (Bernstein Research): Sought clarification on whether customers were pulling forward orders in anticipation of tariffs. Ilan responded that the data pointed to a normal cycle recovery, with no signs of panic ordering. Tore Svanberg (Stifel): Asked about regional disparities in demand due to tariff differences. Ilan explained that Texas Instruments is working closely with customers to optimize manufacturing flows and logistics, leveraging its global footprint. William Stein (Truist Securities): Inquired about growth drivers between pricing and volume, and the competitive environment in China. Ilan stated growth was primarily volume-driven and acknowledged that Chinese competitors are becoming more capable, especially in application-specific areas. In upcoming quarters, the StockStory team will monitor (1) the pace and durability of industrial market recovery and any signs of changing customer inventory strategies, (2) Texas Instruments' execution on shifting manufacturing and logistics to mitigate tariff and supply chain risks, and (3) the impact of intensifying competition in China on both revenue mix and pricing. We are also attentive to how ongoing investments in manufacturing flexibility and product breadth contribute to long-term free cash flow growth. Texas Instruments currently trades at a forward P/E ratio of 28.3×. Should you load up, cash out, or stay put? The answer lies in our free research report. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Sterling Infrastructure (+1,096% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
