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Home > Mall Dynamic > Automotive Chip Market - Take Texas Instruments As An Example
Due to the growing demand for analog and embedded technologies, Texas Instruments has been focusing on opportunities in all markets, with a strategic focus on the industrial and automotive segments. During the quarter, we experienced increasing weakness in the industrial segment and sequential declines in the automotive segment, Mr. Haviv-ilan said.
Still, industrial and automotive businesses will account for 74 percent of Texas Instruments' combined revenue in 2023.
On the company's earnings call, TI Chief Financial Officer Rafael Lizardi said the number of days in inventory at the end of the fourth quarter increased by 14 days to 219 days, and the amount of inventory increased by $91 million to $4 billion.
Dave Pahl, vice president and head of investor relations at Texas Instruments, said the results reflected growing weakness in industrial markets and lower automotive performance than in the prior quarter as customers worked to reduce inventory levels.
Some insiders believe that although the order volume of the automobile market has not yet turned negative, it is already in a slowing stage, and the slowdown of orders is also affected by the shortage of supply chains.
European car sales fell in December for the first time in nearly 17 months as demand for electric vehicles slowed, Bloomberg reported, and automakers are bracing for slower sales growth in 2024.
According to data released by the European Automobile Manufacturers Association (ACEA), in December 2023, new car sales in the EU, EFTA and UK markets were 1.05 million units, down 3.8% year-on-year. From January to December, the cumulative sales volume of 12.85 million vehicles, an increase of 14%.
However, the development of China's automobile industry is still showing a sound trend, and in 2023, China's automobile production and sales exceeded 30 million for the first time. It was learned from the China Association of Automobile Manufacturers that in 2023, China's automobile production and sales reached 30.161 million and 30.94 million, respectively, an increase of 11.6% and 12% year-on-year, and annual sales reached a record high.
According to the data of the China Automobile Association, in 2023, the production and sales of new energy vehicles in China reached 9.587 million and 9.495 million, respectively, an increase of 35.8% and 37.9%, and the market share reached 31.6%. In the main varieties of new energy vehicles, compared with the previous year, the production and sales of the three categories of new energy vehicles showed significant growth.
Texas Instruments said that the semiconductor industry market conditions have deteriorated, the outlook report reflects the weak environment, customers are rebalancing inventory.
Texas Instruments reported 2023Q4 revenue, the quarter of Texas Instruments revenue of $4.08 billion, down 10% sequentially, down 13% from the same period last year; Net income of $1.37 billion and earnings per share of $1.49; Operating profit was $1.5 billion, 38% of revenue, down 30% from the same period last year.
By business, Texas Instruments analog revenue for the quarter was $3.558 billion, down 5% from a year ago. Embedded processing revenue of $837 million, up 10% year-over-year; Other revenue was $275 million, down 11% year-over-year.
For the first quarter of this year, Texas Instruments expects expected revenue of $3.45 billion to $3.75 billion and earnings per share of $0.96 to $1.16.
"In 2023, the company's operating cash flow was $6.4 billion, once again highlighting the strength of our business model, the quality of our product portfolio and the strength of 300mm analog production. Free cash flow over the same period was $1.3 billion." "Over the past 12 months, Texas Instruments invested $3.7 billion in R&D(research and development) and SG&A(selling, general and administrative expenses), $5.1 billion in capital expenditures, and returned $4.9 billion to shareholders through dividends and share repurchases," said Haviv Ilan, president and CEO.
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