Chipmaker Texas Instruments forecast fourth-quarter revenue between $4.40 billion and $4.80 billion. It forecast profit between $1.83 and $2.11 in Q4.
Texas Instruments said it expects that most of its end markets will decline sequentially, with the exception of the automotive market.
Texas Instruments reported a 13 percent rise in revenue to $5.24 billion in the third quarter on strong demand for its semiconductors from the auto sector.
Texas Instruments said Analog revenue grew 13 percent, Embedded Processing grew 11 percent, and Other segment grew 20 percent from the year-ago quarter.
Texas Instruments said personal electronics declined mid-teens, automotive market was up about 10 percent, communications equipment was up high-single digits, and enterprise systems was up mid-single digits.
Texas Instruments said order cancellations increased during the third quarter. Chip makers Advanced Micro Devices (AMD) and Micron Technology have also warned of worsening demand.
“We experienced expected weakness in personal electronics and expanding weakness across industrial,” TI Chief Executive Rich Templeton said.
The Dallas, Texas-based Texas Instruments called the automotive sector an exception to this trend. Summit Insights Group analyst Kinngai Chan noted that many automakers continue to order double the chips they need and expects the demand to slip to pre-pandemic levels in the first half of next year.
Texas Instruments invested $3.3 billion in R&D and SG&A and $3.1 billion in capital expenditures over the past 12 months. Capital expenditures were $790 million in the quarter and $3.1 billion over the last 12 months.
Texas Instruments said it is in production in RFAB2 and expects production in LFAB later this year. In addition, construction of SM1 and SM2 in Sherman, Texas continues as
planned.