texas instruments feels the pinch: tariff anticipation fades
Dallas, Thursday, 4 September 2025.
texas instruments (txn) is experiencing a demand slowdown. this follows an april spike driven by customers anticipating ‘liberation day’ tariffs. the company’s finance chief, rafael lizardi, addressed concerns at a recent conference. he clarified that texas instruments has not discussed any u.s. government equity stake as a condition for chips act incentives. investor worries about future demand led to a more than 4% drop in texas instruments’ share price. the u.s. commerce department has outlined funding for ti of up to $1.6 billion under the u.s. chips and science act.
market reaction and financials
Texas Instruments’ stock experienced a notable downturn. The closing price on september 4, 2025, was $187.29, a decrease of $8.45, representing a 4.512 percent drop [7]. After hours trading saw a further decrease to $186.55 [7]. This market reaction underscores investor sensitivity to shifts in demand and any uncertainty surrounding future growth prospects [1]. Despite this recent dip, the company had reiterated on september 3, 2025, that four of its five end markets are showing signs of recovery [1].
chips act funding and strategic positioning
Texas Instruments is set to receive up to $1.6 billion in direct funding under the CHIPS and Science Act [1][5]. This act aims to bolster domestic semiconductor manufacturing [5]. The funding will support the construction of three 300 mm wafer fabrication facilities in Texas and Utah, part of an $18 billion investment planned through 2029 [5]. CEO Haviv Ilan emphasized the company’s vertically integrated manufacturing model, aiming for 95% in-house production by 2030, to mitigate supply chain vulnerabilities [5].
tariff impacts and demand volatility
The slowdown in demand follows a pronounced spike in april 2025 [1][6]. This surge was attributed to customers accelerating orders in anticipation of potential tariffs [1][6]. Chief financial officer rafael lizardi noted that the january to april strength was influenced by these tariff-driven market dynamics [1]. However, lizardi also stated that growth slowed significantly after april [1][6]. The broader semiconductor market experienced similar volatility during the second quarter of 2025 [6].
long-term resilience and revenue streams
Texas Instruments is viewed as a defensive player in the semiconductor industry [5]. This is partly due to its diversified revenue streams. Approximately 77% of its revenue and 83% of its profits are derived from analog and embedded processing chips [5]. Geographically, 66% of ti’s revenue comes from asia, 15% from europe, and 10% from the united states [5]. Strategic partnerships with major companies like apple, nvidia, and spacex further solidify its market position [5].