TI sees auto semi market bounce back in third quarter

sign outside Dallas office
Revenues at TI were up 1% in the third quarter over a year ago, and auto semiconductors played a big part with re-openings of auto plants that had been closed in the second quarter due to COVID-19.(Texas Instruments)


Texas Instruments saw a rebound in semiconductors sold into the auto and personal electronics markets in the third quarter amid the relentless global pandemic, the company reported Tuesday.

Overall, third quarter revenue at TI was $3.82 billion with net income of $1.35 billion.  Revenues were up 1% compared to the third quarter a year ago. For the fourth quarter, the world’s seventh largest semiconductor company projected revenues in the range of $3.41 billion to $3.69 billion.

Free Daily Newsletter

Interesting read? Subscribe to FierceElectronics!

The electronics industry remains in flux as constant innovation fuels market trends. FierceElectronics subscribers rely on our suite of newsletters as their must-read source for the latest news, developments and predictions impacting their world. Sign up today to get electronics news and updates delivered to your inbox and read on the go.

For the auto segment, the revenue improvement was 75% over the second quarter, although TI didn’t offer a dollar amount. The improvement came on the heels of 40% decline in auto revenues in the second quarter over a year earlier, company officials said.  

The second quarter decline came with car plant closures due to COVID-19, but re-openings of plants in Europe and North America have helped stabilize the revenues for TI.  Nonetheless, TI did not project auto chip or other segment sales for the fourth quarter.

Dave Pahl, vice president and head of investor relations, said on a call with analysts that the position of TI is to remain “cautious” as the impact from COVID-19 could last several years.

Personal electronics were also a bright spot, with revenues up by 20% over the second quarter and 15% over a year ago.  Many semiconductor companies have reported growth in processors for laptops with work from home and learning from home.

Analog revenue grew by 7% over a year ago, while embedded processing declined by 10%. Analog revenues were $2.8 billion, while embedded was $651 million.  Cash on hand at the end of the quarter was $5.2 billion.

TI shares closed slightly higher on the Nasdaq at $150.83 on Tuesday, but began to climb another 1% in after hours trading.

RECENT: Intel agrees to sell its NAND unit to SK Hynix for $9B


Suggested Articles

In June, Su stood out for heartfelt commentary on social injustice after the killing of George Floyd. She challenges industry to do more.

New chip will be incorporated in coffee mug-sized device to cost $199 next year

In a nutshell, Edge ML is a technique by which smart devices process data locally using machine and deep learning algorithms.