§ 01Executive View
Texas Instruments owns the most vertically integrated supply chain in the deep-dive cohort and the second-strongest after TSMC overall: 95%+ of wafers internal by 2030 (>80% on 300mm), seven captive A/T sites globally, GaN device fab and epi captive on its own 200mm Aizu and Richardson lines, and a CHIPS-Act-anchored Sherman complex (SM1 in production Dec 2025; SM2-4 sequencing through 2030) that reshores foundational analog/embedded volume into a US-Mexico-Malaysia-Philippines axis with effectively no Taiwan-tail. The structural moat the synthesis does not yet name explicitly: as TSMC exits GaN foundry by end-July 2027 and NVTS, Infineon and the rest of the cohort scramble to relocate, TXN is doing the opposite — adding captive GaN capacity at exactly the moment foundry GaN supply contracts, and is one of only two GaN reference-design vendors (alongside Innoscience's China-domiciled IDM) with no foundry-counterparty risk. The bear case is the inverse of the bull case: a $5B/year capex peak (now rolling off to $2-3B in 2026) loaded depreciation onto the income statement before the 800V data-center demand curve has converted to revenue, leaving gross margin compressed to 57-58% from a historical 64-65% baseline and creating real underutilization risk if the embedded-analog cycle stays soft. Conviction is 4/5 on the supply-chain dimension specifically: the structural input-side picture is the strongest in the cohort, but the asset-utilization risk is the dominant offsetting tail.
§ 02Chain Map (Substrate → Wafer → Fab → Die → Package → Customer) — TXN Captive vs External Mix at Each Node
| Node | Captive vs External | Geography | Notes & Source |
|---|---|---|---|
| Silicon substrate (300mm) | External — Shin-Etsu, SUMCO, GlobalWafers, SK Siltron | Japan (~60% global), Taiwan, Korea | Commodity tier; multi-source by policy. Not a TXN-specific chokepoint |
| GaN-on-Si epi | Captive at Aizu and Richardson (MOCVD reactors run by TI on TI wafers) | Japan + Texas | TI's GaN process is grown in-house on its own 200mm tools. Contrast NVTS (epi managed by foundry) — TXN owns the epi recipe, the tool capacity, and the qualification |
| Logic / analog wafer fab — 300mm (analog & embedded) | Captive at RFAB1 + RFAB2 (Richardson, TX), LFAB1 (Lehi, UT), SM1 (Sherman, TX) | US-only for advanced 300mm | Per TI 2024 10-K: target >80% of wafers on 300mm by 2030. RFAB2 in tool installation 2024-25; LFAB1 producing since Q4 2022; SM1 in HVM since Dec 17 2025 |
| Logic / analog wafer fab — 200mm (legacy / embedded) | Captive at Aizu (JP), Miho (JP), Dallas (TX), Lehi-old (UT) and supplemental external foundry | Japan + Texas + Utah; foundries not publicly named at single-customer level | TI 10-K language: "to supplement internal manufacturing capacity, TI selectively uses outside suppliers commonly known as foundries and subcontractors" — internal majority is the disclosed posture |
| GaN power device fab (200mm) | Captive at Aizu (volume) + Richardson/Dallas (legacy + R&D) | Japan + Texas | The cohort's only deep-dive GaN-on-Si vertically-integrated capacity in the West. Aizu qualified for mass production Oct 2024; combined with Dallas, "4× internal GaN capacity" |
| GaN power device — 300mm | Captive pilot complete; customer samples shipping (not yet qualified at customer for HVM) | Texas / Sherman line is the natural future volume site | TI press release Oct 24 2024: "successfully piloted... fully transferable to 300mm." TI GaN product page (May 2026): "delivering customer samples of GaN technology manufactured on 300mm wafers." Sampling, not production-qualified. |
| Wafer probe / sort | Captive at fab sites + Chengdu (CN) | Mostly captive | Chengdu is TI's only fully integrated site (fab + bump + probe + A/T) |
| Bump / RDL | Captive at Chengdu | China | Captive bump-and-probe is a structural advantage vs fabless peers |
| Assembly & test (A/T) | Captive — 7 sites globally | Aguascalientes (MX), Chengdu (CN), Kuala Lumpur (MY), Melaka (MY) — 2 fabs as of Nov 2025, Baguio (PH), Pampanga/Clark (PH), Aizu (JP), Miho (JP) | Per TI manufacturing site disclosures + Nov 2025 Melaka opening PR. Cheonan, Korea does not appear in TI's site list (often confused with onsemi/Amkor sites) — corrected here. OSAT use (ASE/Amkor) supplemental only, not disclosed at percentage |
| Final test / burn-in | Captive at A/T sites | Same as above | |
| Distributors & direct sales | TI.com direct + Arrow, Avnet, distis | Global | Direct-to-customer revenue mix has grown post-2020; >70% direct now per investor materials |
| End customer — 800V AI data center | NVIDIA reference design (1 of 14 silicon partners; same list NVTS sits on) | NVIDIA developer ecosystem | Mar 16 2026: TI unveils complete 800VDC architecture at GTC with NVIDIA — 800V→6V isolated bus converter at 97.6% peak efficiency, 6V→<1V multiphase buck, full hot-swap. Direct competitor to NVTS's 800V→6V single-stage demo |
§ 03Input Map
Tier 1 — what enters the TI fence
| Input | Supplier(s) | Concentration | Geography | Substitution | Notes |
|---|---|---|---|---|---|
| 300mm Si wafers | Shin-Etsu, SUMCO, GlobalWafers, SK Siltron | Multi-source (4 qualified) | Japan / Taiwan / Korea | Multi-source feasible; standard 6-12mo qual | Not a chokepoint for TI |
| Wafer fab equipment | Applied Materials, LAM, Tokyo Electron, ASML (DUV only — no EUV needed at trailing nodes), KLA | Multi-vendor with sole-source niches | US, Japan, Netherlands | Tool-by-tool qual 12-24mo | TI does not consume EUV — analog/embedded nodes are 28nm and trailing. KLA inspection is the closest sole-source for TI specifically |
| MOCVD GaN epi reactors | Aixtron (DE) primary; Veeco (US) secondary | Concentrated | Germany / US | Indirect — Aixtron G5+/G10 is the de-facto Western 200mm GaN tool; same lock-in WOLF/NVTS face | TI is captive on the recipe and the wafer; only the reactor is external — narrower exposure than fabless GaN peers |
| Photoresist (KrF/ArF immersion, no EUV) | JSR, Tokyo Ohka, Shin-Etsu Chemical, Sumitomo, Fujifilm, Merck | Multi-source for non-EUV resist | Mostly Japan | Multi-source feasible | TI is structurally less photoresist-tight than TSMC because no EUV/High-NA dependency |
| Specialty / ultra-pure gases (neon, NH3, hydrogen, fluorine) | Linde, Air Liquide, Taiyo Nippon Sanso, Air Products | Multi-source post-Russia 2022 reset | Global | Multi-source | Not a TI-specific risk |
| Trimethyl-gallium / -aluminum / NH3 for GaN epi | Specialty chem; gallium-precursor concentrated | Gallium ~80% China-refined | China gallium chain | None at chemistry level | Gallium chokepoint shared with NVTS, IFX, IDM peers — but TI's vertical integration of epi means it captures more of the GaN-process margin if precursor cost rises |
| Wet chemistry / slurries / CMP | Cabot, Merck, Fujifilm, Entegris | Multi-source | Mixed | Multi-month qual | Routine |
| EDA tools | Cadence, Synopsys | Duopoly | US | IP-locked | Not a tail risk |
| Lead frames / package substrates / mold compound | Multi-vendor — Sumitomo Bakelite, Hitachi Chemical, Shinko, Unimicron, etc. | Multi-source | Japan / Taiwan / SE Asia | Multi-source | TI assembles in 7 captive A/T sites; substrate side is multi-source |
Tier 2 chokepoints — the hidden tier
The structural picture flips here. TI is meaningfully less tier-2-exposed than every other deep-dive name except possibly Innoscience. The reason: the layers where TSMC/NVTS/Infineon are exposed (sole-source EUV optics, advanced photoresist, single-source foundry) are layers TI does not consume.
- Aixtron G5+/G10 MOCVD reactor backlog — the only tier-2 chokepoint that touches TI directly. Every Western GaN ramp queues on Aixtron capacity. TI's claimed 4× expansion (200mm Aizu + Dallas) plus the eventual 300mm volume node both require Aixtron tool deliveries. However, TI's 200mm GaN is qualified and producing today, which means TI is past the most acute Aixtron-induced ramp risk that NVTS-PSMC and Navitas-GF Burlington are still in front of.
- Gallium precursor concentration in China (~80% refined gallium, Aug 2023 export controls precedent). Industry-wide GaN cost shock if escalated. TI's vertical integration converts this from a foundry-pass-through problem (NVTS, IFX externally fabbed) into a direct margin problem — but TI also retains every dollar of gallium-cost-pass-through if it raises ASPs. Symmetric risk; better margin retention.
- Lead-frame and substrate concentration in Asia. TI's A/T sites are ~75% Asia-located (Chengdu, KL, Melaka×2, Baguio, Clark, Aizu, Miho) plus Aguascalientes. A regional substrate disruption (Japan earthquake hitting Hitachi Chemical / Sumitomo Bakelite) is the most plausible non-trivial external shock. Lower probability than the corresponding photoresist concentration risk for TSMC, because substrate suppliers have more diversified geographic footprints and the products are commodity-tier.
- Cheonan / Korea OSAT exposure — none disclosed. Despite the user's prompt naming Cheonan as a possible TI captive site, public TI manufacturing disclosures do not include a Korea-domiciled A/T facility. Cheonan is the home of major Amkor and onsemi sites; TI may use Amkor Cheonan as a supplemental OSAT but this is not corroborated in TI's public filings. Corrected from prompt. TI's public Korea presence is sales/applications, not assembly.
- No advanced packaging / CoWoS / hybrid-bonding exposure. TI is structurally uninvolved in the BESI/Shibaura/AMAT hybrid-bonding chokepoint that constrains TSMC and the AI accelerator stack. Analog and embedded products use mature flip-chip and wirebond; pricing and capacity for these are abundant.
- Mexico / China A/T tariff exposure. Section 301 (China-origin) and Section 232 (steel/aluminum derivative) plus the broader 2025-26 tariff regime touch TI's outbound flow from Aguascalientes (MX → US) and Chengdu (CN → US). TI's US-fab + US-final-test path through SM1 is the structural hedge — but most of TI's high-volume A/T remains offshore. The Aguascalientes-to-US flow is USMCA-protected for now; the Chengdu-to-US flow is exposed.
§ 04Risk Scoring
| Risk vector | Score (1-5; 5 = severe) | Why |
|---|---|---|
| Single-source exposure | 2 | No tier-1 sole-source. Aixtron is a tier-2 concentration but TI's 200mm GaN is already producing, blunting the timing risk. Best in cohort. |
| Geographic concentration of inputs | 3 | Si wafers Japan/Taiwan/Korea; gases global; gallium precursor China-tilted. Symmetric across peers — TI does not have unique concentration risk |
| Geopolitical exposure | 2 | TI's own production is US/Mexico/Japan/Malaysia/Philippines/China dispersed. Taiwan exposure is trivial (sales office only — no fab, no captive A/T). The cohort's most Taiwan-light name. Critical cohort-portfolio finding |
| Capacity tightness — own fabs | 2 (= weak risk on this dimension) | The opposite of TSMC. SM1-4 + LFAB1-2 + RFAB1-2 give TI 5-7 years of forward 300mm capacity. Underutilization, not tightness, is the real risk |
| Capacity tightness — supplier side | 2 | TI's tier-1 inputs (Si wafers, gases, chemistry) are abundant; foundries supplemental, not load-bearing |
| Inventory cushion | 2 | TI runs structurally elevated inventory (consignment with auto/industrial customers; Q3 2025 days-of-inventory ~225 per investor materials, up from historical 130-150). The 2022-25 destock cycle built buffer |
| Pass-through power | 2 (= strong) | Vertical integration means cost-shocks land in TI's WIP, not its cash flow. Q1 2026 GM 58% (up 210bps QoQ), guiding to 75-85% incremental margins ex-depreciation. Second-strongest cohort pass-through after TSMC |
| Asset utilization (ADDED — TI-specific reverse risk) | 4 | The flip side of vertical integration: $40B Sherman + $11B LFAB2 + $5B/yr peak capex loaded depreciation onto the P&L before the 800V demand inflection. If embedded-analog cycle stays soft into 2027, fixed-cost lever cuts hard against TI |
Synthesis. TI's risk profile is the inverse of NVTS/TSMC: classical supply-chain vectors are 2 across the board (best in cohort); the binding risk is asset-utilization on capacity TI built before demand showed up. The TSMC GaN exit by July 2027 is good news for TI on the supply side — it removes a cohort-wide foundry-supply uncertainty and converts the GaN three-way race into a structural advantage for the only deep-dive name that controls its own GaN epi, fab, and packaging end-to-end. The cohort thesis on TI is therefore: TI's supply chain is sound; the question is whether the demand curve arrives in time to load the asset base.
§ 05Pass-Through Power
TI's pass-through is the second-strongest in the deep-dive cohort and structurally divergent from the fabless peers.
- Vertical-integration mechanics. When wafer cost rises (gallium precursor, ASML DUV pricing, Si wafer ASP step-up), the cost lands inside TI's own COGS rather than as a foundry pass-through. Conversely, when wafer cost falls (300mm vs 200mm GaN economics, Aixtron tool depreciation rolling off), TI captures the spread. Fabless GaN peers (NVTS, EPC, Power Integrations) cannot do this — they pay their foundry's price plus margin and then negotiate down with NVIDIA / Vertiv on the way out.
- Q1 2026 print as live evidence. GM 58% (up 210bps sequentially), with management guiding to 75-85% incremental fall-through excluding depreciation. The Sherman + Lehi capex cycle is the binding compression — when SM1's depreciation curve shifts from "loading" to "loaded," GM has structural recovery toward 60-62%. Compare NVTS's Q3 2025 non-GAAP GM 38.7% (declining) — a 20pp gap that is fundamentally a vertical-integration premium.
- CHIPS Act + ITC + state tax stack as effective margin. Net effective capex burden after subsidies is ~30-40% lower than headline:
- CHIPS direct grant: $1.6B for SM1, SM2, LFAB2 (signed Dec 20 2024)
- Investment Tax Credit (Section 48D): 25%-of-qualified-property — and expanded to 35% in 2025; TI received ~$670M of cash benefit in 2025 alone. On $30-40B of cumulative qualified spend, the ITC alone is worth $7-10B+ of cash over the cycle.
- Texas state tax abatements for Sherman: $400M+ over 30 years (Grayson County / Sherman ISD chapter 313/403 packages)
- Utah state tax abatements for LFAB2: ~$330M (Lehi / Utah Governor's Office of Economic Opportunity)
- Net effective capex for the $60B+ headline US investment: estimated $40-45B after subsidies — a structural cost-of-capital advantage that fabless GaN peers do not access at meaningful scale.
- Distribution mix shift. TI moved from ~60% distributor / 40% direct in 2018 to ~70%+ direct today (per TI capital-management updates). Direct customers (Apple, Ford, Medtronic, NVIDIA, SpaceX named at SM1 opening) carry better long-term agreements and less channel-stuffing volatility. Pricing pass-through is faster than the disti-mediated cycle.
- The risk to pass-through. Embedded-analog is competitive; MPS, ADI, NXP, Renesas, ON, Microchip all chase the same sockets. If the 2024-25 destock extends into a 2026-27 underutilization regime, TI's pricing lever cuts the wrong way (price down to fill capacity vs hold margin). This is the load-bearing offsetting risk.
Net: score 2 — strong pass-through, with the asset-utilization caveat as the binding offsetting risk on the demand side, not the input side.
§ 06Stress Scenarios
Scenario 1: Embedded-analog cycle extends — Sherman SM1 underutilized through 2027
Probability: mid, 25-40% over 18 months. The 2024-25 destock has shown signs of recovery (Q4'25 industrial commentary, Q1'26 GM expansion), but the cycle has been longer and shallower than 2018-19's analogous bottom. SM1 entered HVM December 2025 at low single-digit utilization; ramp curve to 60%+ takes 18-24 months under-normal, longer if customer pull stays weak.
Mechanism. Fixed-cost depreciation flows through COGS regardless of utilization; variable cost is small share of analog/embedded BOM (Si wafers, chemistry, gases). At 30% SM1 utilization, depreciation per shipped die is ~3× steady-state — directly compresses GM by 4-6pp.
Financial impact. GM held in mid-50s rather than recovering to 60-62%; FCF compressed by $1-2B/year vs base case; capex deferral (already announced — 2026 capex guided to $2-3B vs $4.6B in 2025) is the partial offset. Equity multiple compresses 1-2 turns on EBITDA-margin compression.
Response options. (1) Slow SM2-4 sequencing further (already pulled forward in 2024-25 vs original schedule, can be slowed). (2) Lean into 800V data-center wins to displace the auto/industrial demand gap. (3) Accept lower steady-state internal-mfg target temporarily — re-baseline 95% by 2030 to 90% by 2032. (4) Buyback acceleration with the freed capex — TI repurchase capacity is structurally large.
For the long thesis. The dominant operational risk. Disclosure that would change view: SM1 utilization run-rate by Q3 2026 print; auto/industrial revenue mix recovery vs 2H'25 trough.
Scenario 2: Section 232 / Section 301 tariff escalation on Chengdu A/T → US flow
Probability: mid-high, 35-50% over 24 months. Section 232 semiconductor tariff investigation initiated April 2025 is in late stages; the Trump administration has signaled tariffs on China-assembled chips going to US distribution. TI's Chengdu site is the only fully-integrated TI facility in China (fab + bump + probe + A/T); ~10-15% of TI's worldwide A/T volume estimated to flow through Chengdu (not separately disclosed).
Mechanism. Section 301 List 4 on China-origin semiconductors (current 25% baseline) escalates to 50-100%; Section 232 adds an additional incremental tariff on China-assembled finished chips. Chengdu A/T volume would either (a) reroute to KL/Melaka/Manila (capacity exists but qualification cycle 6-12 months), (b) absorb the tariff as a margin hit, or (c) ship directly to non-US end markets and reroute non-China A/T to US-bound flow.
Financial impact. GM compression of 100-300 bps for 1-3 quarters during requalification; permanent re-routing reduces effective utilization at Chengdu. Modest revenue impact (<2%) given multi-site flexibility.
Response options. TI's seven-site A/T network is the structural hedge that fabless competitors lack. TI is the cohort name with the most flexibility on this axis. Trade-route disruption = competitive advantage on relative basis vs Innoscience (China-only IDM) and even vs Infineon (Kulim Malaysia + Reutlingen + Villach concentrated).
For the long thesis. Net positive for TI on a relative basis. The supply-chain optionality is itself a moat.
Scenario 3: GaN three-way race — TXN's vertical-integration cost curve dominates by 2027-28
Probability: mid, 35-50% over 24-36 months. The synthesis-level open question is whether 300mm cost curve dominates density advantage (NVTS) before density wins design-in scale. TI's 300mm GaN pilot is complete; customer samples shipping 2026; volume production qualifies sometime in the 2027-28 window depending on yield ramp. The entire NVTS supply-chain memo is structured around this scenario being a threat to NVTS — meaning the same scenario is a thesis-confirmer for TXN.
Mechanism. 200mm GaN today at TI Aizu/Dallas → 300mm GaN at TI Sherman/Richardson by 2027-28 → die cost falls 30-50% on wafer-area economics + 200mm tool depreciation rolling off. Combined with vertical-integration package economics and the existing TI relationship with NVIDIA (live in the 14-vendor 800V partner list), TI takes share at the design-in moment when hyperscaler / box-builder cost-out meets density requirement.
Financial impact. GaN/SiC/embedded-power data-center revenue: TI does not break out, but the embedded-power "data-center end market" was called out as a growth driver in Q4'25 commentary. A successful 300mm GaN volume transition could add $500M-$1B of incremental revenue by 2028-29 at GM accretive to corporate average.
Response options. Defensive: TI is the lower-risk side of this scenario. Offensive options: (1) accelerate 300mm GaN qualification to 1H'27. (2) bundle with TI's L8c board-level VRM/eFuse portfolio for full-stack 800V wins. (3) preferential pricing to NVIDIA reference designs to lock the design-in.
For the long thesis. This is the thesis-supporting scenario. Disclosure that would change view: any concrete TXN-300mm-GaN production-qualified date, plus disclosed 800V design-win count at NVIDIA / Vertiv / Schneider / Delta.
Scenario 4: Taiwan tail event (cohort-symmetric)
Probability: low-mid, 5-10% over 5 years for a meaningfully disruptive event (per cohort synthesis Open Question §3).
Mechanism. Cohort-wide. TI's direct exposure: (a) ~10% of Si wafers historically sourced from GlobalWafers Taiwan (multi-source; substitutable to Shin-Etsu/SUMCO Japan / SK Korea within 6-12 months), (b) substrate suppliers Unimicron / Nanya PCB / Kinsus exposed but multi-sourceable, (c) no captive Taiwan production, (d) no Taiwan A/T site, (e) negligible Taiwan customer concentration (TI's customers are global hyperscalers, auto OEMs, industrial — Taiwan AI ODMs are a small slice).
Financial impact. TI is the cohort's least Taiwan-exposed deep-dive name. Quantification: <5% of TI's worldwide capacity touches Taiwan, vs NVTS ~60% (PSMC + Amkor Taiwan + TSMC tail), Infineon ~15-20% (TSMC partnership for some advanced GaN), TSM 92%, AVGO ~50% (TSMC dependency), NVDA ~70%+ (TSMC + ODM Taiwan). TXN is the cohort's most natural Taiwan-tail hedge.
Response options. Minimal actions needed; structural posture is the response.
For the long thesis. This is the cross-cohort portfolio-construction finding that the synthesis Section 7 / Open Question §3 names but does not yet quantify: TXN is a near-pure Taiwan-tail-hedge expression within the deep-dive cohort. Sizing implication: TXN's beta to a Taiwan event is structurally below 1 vs cohort average.
§ 07Bull Points
- The cohort's only deep-dive name with no foundry counterparty risk on its core power-semi roadmap. TSMC ends GaN by July 2027; NVTS, Infineon, and the broader GaN field scramble for PSMC / GlobalFoundries Burlington / X-Fab / TowerSemi. TXN is not in this scramble. Its 200mm GaN at Aizu and Dallas is producing now; its 300mm GaN pilot is done; customer sampling has begun. The vertical-integration thesis the synthesis names at Section 3.3 is structurally validated by the TSMC exit.
- The cohort's most Taiwan-light deep-dive name. <5% of capacity touches Taiwan. The synthesis Section 7 Open Question §1 (Taiwan-tail concentration as the cohort's biggest unhedged risk) is hedged by adding TXN at a higher weight, not by adding shorts. This is a cohort-level portfolio finding, not just a TXN-level one.
- CHIPS Act + ITC + state-tax stack reduces effective capex by ~30-40%. $1.6B direct grant + 25% (now 35%) ITC + Texas/Utah abatements = roughly $15-20B of subsidy on $60B+ headline capex. This is the cost-of-capital differential that fabless peers do not access — it lowers TI's required ROI hurdle on the same fab and means TI's depreciation absorption ramp is shallower than nominal capex would suggest.
- Pass-through power is structurally durable; ITC + capex roll-off is the GM tailwind 2027 onward. Q1'26 GM 58% expanded 210bps QoQ; SM1 depreciation peak in 2026-27, tailing off as utilization ramps; capex falls from $4.6B (2025) to $2-3B (2026 guide). The net is a multi-year FCF expansion thesis once the asset-loading inflection passes.
- Captive A/T network is itself a tariff-regime hedge. Seven A/T sites across Mexico, Malaysia (×2), Philippines (×2), China, and Japan let TI re-route chip flow under any plausible Section 232 / 301 / USMCA / IPEF tariff arrangement. NVTS, NVTS-class fabless competitors, and even Infineon's more-concentrated A/T footprint cannot match this flexibility.
- The 800V data-center entry is real, dated, and competitive. March 16 2026: TI unveiled at NVIDIA GTC the complete 800V→6V→<1V architecture with 800V→6V isolated bus converter at 97.6% peak efficiency, 6V→<1V multiphase buck, full hot-swap controller, and 30kW PSU reference. This goes head-to-head with NVTS's flagship 800V→6V single-stage demo at >2000W/in³ — at TI's superior cost structure and customer-relationship breadth.
§ 08Bear Points
- $5B/year peak capex loaded depreciation onto the P&L before the demand inflection. Q1'26 GM 58% is well below the historical 64-65% baseline; the gap is depreciation. If embedded-analog cycle stays soft into 2027, depreciation absorbs FCF faster than revenue ramps. The fixed-cost lever cuts both ways and is at its worst point now.
- SM1 in HVM Dec 2025; SM2-4 sequencing through 2030. This is a 5-year asset-loading horizon during which TI must keep filling capacity. If China-domestic analog (CXMT-class, China automotive analog domestication) takes 10-15% of the auto/industrial mid-range away, the SM2-4 sequence can slip and stranded-asset risk emerges.
- The 95% internal manufacturing target is demanding. Today TI is ~70-80% internal (per TI investor disclosures); reaching 95% requires SM2-4 sequencing on schedule plus continued LFAB2 ramp. Slip risk is non-trivial; the associated capex bill is committed before the demand recognition.
- Embedded-analog competitive intensity is high. MPS at L8c, ADI on signal-chain, NXP / Renesas / Infineon on auto-MCU, ON on power-discrete. TI's vertical-integration moat is real on cost; on product breadth the cohort is multi-vendor by customer policy. Pricing pressure exists.
- Aguascalientes and Chengdu A/T flows are tariff-exposed. USMCA protects the Mexico flow today but the regime is up for review in 2026. Section 232 / Section 301 expansion on China-assembled chips would force re-routing through Malaysia/Philippines at requalification cost.
- 300mm GaN is "samples" not "qualified at customer for HVM." Care is required: the synthesis-level claim "TI 300mm GaN pilot done" is publicly anchored, but production qualification at customer typically takes 12-24 months from sampling. Don't conflate "shipping samples" with "shipping volume." Qualification to volume in the 2027 NVIDIA Kyber design-in window is plausible but not certain.
- The 800V design-in is one of fourteen (NVIDIA's 14-vendor silicon partner list — same list NVTS sits on). NVIDIA can substitute Innoscience, NVTS, Infineon, MPS, EPC for any specific socket. Vertical integration gets TI to the bid; it does not by itself win the design-in.
§ 09Conviction (1-5)
4 / 5 on the supply-chain dimension specifically.
The score reflects: (a) the strongest input-side picture in the deep-dive cohort other than TSMC itself — vertical integration on GaN epi/fab/A/T, no EUV exposure, no advanced-packaging chokepoint, no foundry counterparty on the core power-semi roadmap; (b) the cohort's natural Taiwan-tail hedge — a load-bearing portfolio finding for the broader thesis; (c) the GaN three-way race (Section 3.3 of synthesis) increasingly tilts toward TI as TSMC exits foundry GaN and NVTS takes on triple-foundry execution risk; (d) CHIPS Act + ITC + state-tax stack reduces effective capex by ~30-40%, materially lowering the asset-utilization break-even. Not a 5 because: (e) asset-utilization risk is real and binding through 2026-27; (f) the 800V data-center entry is competitive and design-in slots are not won yet; (g) 300mm GaN is sampling not qualified, so the structural advantage is one ramp cycle away from being booked.
The conviction is higher than NVTS's 2/5 by two full points specifically because the supply-chain risks invert: NVTS's worst risks (foundry counterparty, Taiwan tail, pass-through compression) are exactly TXN's strengths. The cohort thesis on the GaN three-way race finds its cleanest expression as long-TXN paired against the foundry-transition risk in NVTS, not as long-NVTS for density alone.
§ 10Key Risks to This Read
- Assumption: SM1 utilization ramps to 50%+ by Q3 2026 and 70%+ by mid-2027. A slower-than-expected ramp materially compresses GM and tests the asset-loading thesis. This is the dominant operational tail risk.
- Assumption: 300mm GaN production qualification at customer by 1H 2028. TI press materials say "fully transferable to 300mm" but production qualification timelines are not publicly disclosed. A 12-18 month slip preserves the strategic position but delays the cost-curve benefit.
- Assumption: ITC remains at 35% through 2029 and CHIPS direct grant fully disburses. Political risk on both. A reversion to 25% ITC reduces the subsidy stack by ~$3-4B over the cycle. A clawback or payout dispute on CHIPS direct funding is possible but unlikely.
- Assumption: Cheonan, Korea is not a TI captive A/T site. I have no public evidence to contradict this; if TI does have a Korea A/T site (e.g., supplemental Amkor Cheonan capacity that has effectively become captive), the geographic concentration picture shifts modestly. Low confidence on this either way.
- Assumption: TI's gross margin recovers toward 60-62% by 2027 as depreciation curve flattens. Sensitive to cycle-recovery shape. A double-bottom in industrial demand could push the recovery to 2028.
- Disclosure that would most change the read: (1) SM1 utilization rate by Q3 2026 print; (2) 300mm GaN production qualification at customer date; (3) 800V data-center design-win count at NVIDIA / Vertiv / Schneider / Delta; (4) Section 232/301 tariff resolution and Aguascalientes / Chengdu volume routing decisions; (5) % of A/T volume captive vs OSAT (currently undisclosed at exact figure — best estimate >85% captive).
§ 11Sources
- Texas Instruments 2024 Annual Report (10-K filed Feb 14, 2025). https://investor.ti.com/static-files/9b1a7eae-9fdb-4ce9-8700-1a707c1e420e
- Texas Instruments 2025 Annual Report (10-K). https://investor.ti.com/static-files/fc9d9346-cf77-40db-902a-e9961e9c5736
- TI press release — "Texas Instruments expands internal manufacturing for gallium nitride (GaN) semiconductors, quadrupling capacity" (Oct 24, 2024). https://www.ti.com/about-ti/newsroom/news-releases/2024/2024-10-24-texas-instruments-expands-internal-manufacturing-for-gallium-nitride--gan--semiconductors--quadrupling-capacity.html
- TI press release — "Texas Instruments unveils complete 800 VDC power architecture for future generation AI data centers with NVIDIA" (Mar 16, 2026). https://www.ti.com/about-ti/newsroom/news-releases/2026/2026-03-16-ti-unveils-complete-800-vdc-power-architecture-for-future-generation-ai-data-centers-with-nvidia.html
- TI press release — "Texas Instruments plans to invest more than $60 billion to manufacture billions of foundational semiconductors in the U.S." (Jun 18, 2025). https://www.ti.com/about-ti/newsroom/news-releases/2025/texas-instruments-plans-to-invest-more-than--60-billion-to-manufacture-billions-of-foundational-semiconductors-in-the-us.html
- TI press release — "Texas Instruments signs preliminary agreement to receive up to $1.6 billion in CHIPS and Science Act proposed funding" (Aug 16, 2024). https://www.ti.com/about-ti/newsroom/news-releases/2024/2024-08-16-texas-instruments-signs-preliminary-agreement-to-receive-up-to--1-6-billion-in-chips-and-science-act-proposed-funding-for-semiconductor-manufacturing-in-texas-and-utah.html
- TI press release — "Texas Instruments announces award agreement for CHIPS and Science Act funding" (Dec 20, 2024). https://www.ti.com/about-ti/newsroom/news-releases/2024/2024-12-20-texas-instruments-announces-award-agreement-for-chips-and-science-act-funding.html
- TI press release — "Texas Instruments breaks ground on new 300-mm semiconductor wafer fabrication plant in Utah" (LFAB2; Nov 2, 2023). https://www.ti.com/about-ti/newsroom/news-releases/2023/2023-11-02-texas-instruments-breaks-ground-on-new-300-mm-semiconductor-wafer-fabrication-plant-in-utah.html
- TI press release — "Texas Instruments opens its second assembly and test factory in Melaka, Malaysia" (Nov 2025). https://www.ti.com/about-ti/newsroom/news-releases/2025/texas-instruments-opens-its-second-assembly-and-test-factory-in-melaka-malaysia.html
- TI manufacturing site — Sherman, Texas (SM1-SM4 status). https://www.ti.com/about-ti/company/ti-at-a-glance/manufacturing/sherman.html
- TI manufacturing site — Lehi, Utah (LFAB1-LFAB2 status). https://www.ti.com/about-ti/company/ti-at-a-glance/manufacturing/lehi.html
- TI worldwide manufacturing overview. https://www.ti.com/about-ti/company/ti-at-a-glance/manufacturing.html
- TI gallium nitride product page (300mm sample availability). https://www.ti.com/technologies/gallium-nitride.html
- TI Q3 2025 earnings call transcript (Oct 21, 2025). https://investor.ti.com/static-files/c11b1e9c-bf55-403d-8e59-e0a026ca8ff4
- TI Q4 2025 financial results press release (Jan 27, 2026). https://www.ti.com/about-ti/newsroom/news-releases/2026/2026-01-27-ti-reports-q4-2025-and-2025-financial-results-and-shareholder-returns.html
- TI Capital Management investor materials. https://investor.ti.com/static-files/383c579a-4e94-4292-a31b-1bd913f2cadc
- ATREG — "Texas Instruments Lehi, UT fab acquisition case study" (Micron-to-TI 2021 transaction details). https://atreg.com/case-studies/atreg-assists-texas-instruments-with-acquisition-of-micron-lehi-utah-fab-acquisitionehi-ut-300mm-operational-fab/
- Trendforce — "TI to Receive USD 1.6 Billion Funding for Building Three 300mm Fabs" (Aug 2024). https://www.trendforce.com/news/2024/08/20/news-ti-to-receive-usd-1-6-billion-funding-for-building-three-300mm-fabs/
- Department of Commerce — "Biden-Harris Administration Announces Preliminary Terms with Texas Instruments to Expand U.S. Current-Generation and Mature-Node Chip Capacity" (Aug 2024). https://www.commerce.gov/news/press-releases/2024/08/biden-harris-administration-announces-preliminary-terms-texas
- IRS — Advanced Manufacturing Investment Credit (Section 48D guidance). https://www.irs.gov/credits-deductions/advanced-manufacturing-investment-credit
- Tom's Hardware — "New Texas Instruments fab will pump out tens of millions of chips per day — first 300mm fab starts production after $60 billion investment" (Dec 2025). https://www.tomshardware.com/tech-industry/semiconductors/new-texas-instruments-fab-will-pump-out-tens-of-millions-of-chips-per-day-first-300mm-fab-starts-production-after-usd60-billion-investment
- Semiconductor Today — "TI adds 200mm GaN power semiconductor production in Japan, quadrupling internal capacity" (Oct 2024). https://www.semiconductor-today.com/news_items/2024/oct/ti-241024.shtml
- NVIDIA Developer Blog — "Building the 800 VDC Ecosystem for Efficient, Scalable AI Factories" (silicon-partner list including TI). https://developer.nvidia.com/blog/building-the-800-vdc-ecosystem-for-efficient-scalable-ai-factories/
- Cohort synthesis — Section 2 (chip-to-grid value chain, TXN at L8b/L8c), Section 3.3 (GaN three-way race — Infineon scale / TI vertical / Navitas density), Section 3.4 (supply chain chose 800V, Morroni quote), Section 3.11 (embedded-analog cycle, TXN-specific), Section 7 Open Question §1 (Taiwan-tail concentration as cohort's biggest unhedged risk). ../synthesis.md
- Cohort companies.json — TXN entry (id 11). ../companies.json
- Cohort corpus — "The AI Power Crisis Part 2" (Crucible / NuttyCLD; Morroni quote, three-way GaN race framing). ../corpus/corpus.md
- Cross-reference NVTS/supply-chain.md — TSMC GaN exit by July 2027 framing; PSMC + GF Burlington transition; the foundry-loss frame TI's vertical play structurally hedges. ../NVTS/supply-chain.md
- Cross-reference TSM/supply-chain.md — Taiwan-tail framework; foundry capacity context; cohort tier-2 chokepoint analysis (gallium, photoresist, EUV) for differential exposure. ../TSM/supply-chain.md
- Refinement log — C-NVTS-1 cross-ticker brief flagging the TXN vertical-integration / NVTS foundry-loss complementary frame (May 4, 2026).
../refinement-log.md
Works cited
- Texas Instruments 2024 Annual Report (10-K filed Feb 14, 2025)
- Manufacturing footprint: RFAB1+RFAB2 (Richardson TX), LFAB1+LFAB2 (Lehi UT), SM1+SM2 (Sherman TX) all 300mm
- 95% internal-mfg target by 2030 with >80% on 300mm
- 'Foundries and subcontractors used selectively to supplement internal capacity'
- + 1 more
- Texas Instruments 2025 Annual Report / Notice of 2026 Annual Meeting — Investor Relations
- >80% direct-customer revenue 2025 (vs ~33% in 2019)
- No single customer >10% of revenue
- >40% of revenue from outside top 100 customers
- + 1 more
- Texas Instruments Q3 2025 Earnings Call Transcript — The Motley Fool
- Q3 2025 industrial +25% YoY; automotive +HSD% YoY
- Customer inventories at low levels; depletion behind us
- China commentary in Q2 2025 (referenced): China +19% sequentially, +32% YoY
- TI Capital Management 2022 earlier framework
- 9 FCF/share at trough prior framework; actual trough 1.47 (6x miss)
- TI Capital Management Review Haviv Ilan CEO Feb 2026
- TI SAM >60B; 8+ FCF/share 2026 guide; capex 2-3B 2026
- TI Q3 2025 earnings call transcript (Oct 21, 2025)
- Q3 2025 capex / depreciation commentary
- End-market mix data underlying inventory-days estimate
- TXN Q1 2026 Earnings Transcript — The Motley Fool
- Q1 2026 revenue $4.83B +19% YoY; analog revenue $3.92B +22% YoY; embedded +12%
- Data center +90% YoY; industrial +30% YoY
- Gross margin 58.0%; operating margin 37%
- + 1 more
- Analog IC Market Trends Coherent Market Insights
- 101.5B 2024 TAM; 6.1% CAGR through 2033
- Analog rankings: Top 10 suppliers own 68% market share — EDN
- Top 10 analog suppliers control 68% of market — TI #1 at ~19%
- ADI #2; Infineon, STM, NXP, ON, Renesas, Microchip, MPWR rounding the top 10
- Analog Semiconductor Market Fortune Business Insights
- 87.5B 2024 TAM; 7.4% CAGR through 2034
- Analog Semiconductor Market Mordor Intelligence
- 130B 2031 projection; 6-7% CAGR
- Analog Semiconductor Market Precedence Research
- 96.4B 2025; 5.9% CAGR
- Analog Semiconductors Market GM Insights
- Conservative 3.3% CAGR 2025-2030
- ATREG — Texas Instruments Lehi, UT fab acquisition case study (Micron-to-TI Q4 2021)
- TI acquired Lehi fab from Micron for $900M in Q4 2021
- Production at LFAB1 began Q4 2022
- EDN Analog Rankings Top 10 Suppliers 68 Percent Market Share
- TXN 19% ADI 12% IFX 10-11% STM 9% NXP 8%; HHI estimation basis
- Embedded Processor Market Straits Research
- 23.4B 2024; 39.9B 2033; 6.1% CAGR
- Global Power Semiconductors AI Infrastructure Atlas Peak Research
- Power semi stack 56.9-57B 2025; AI-DC content per rack
- Global Semiconductor Market grows 26% in 2025 WSTS
- 2025 total semiconductor market actuals
- Microcontrollers Target 34B by 2030 Yole Edge AI Vision
- Yole MCU 34B by 2030; 6% CAGR; auto largest at 13B
- MPWR — The Power Behind the Brain: A Deep Dive into MPWR in the AI Era — FinancialContent
- MPWR 26.4% revenue growth 2025 to $2.8B
- MPWR sampling 800VDC solutions for Blackwell / Vera Rubin
- Positioned for ~70% of NVIDIA Vera Rubin VRM share
- + 1 more
- Power Management IC Market 69.54B by 2035 Astute Analytica
- PMIC 29.25B 2025; 10.1% CAGR; intelligent PMICs 1.50-3.00 vs 0.10 commodity
- Texas Instruments Q1 FY 2026: Data Center and Industrial Demand Lift Outlook — Futurum Group
- TI Q1 2026 data center and industrial demand commentary
- Outlook framing for FY26 by analyst coverage
- Texas Instruments vs Analog Devices comparative analysis — Artificall
- TI 19% analog share; ADI 12%
- TI vertical integration vs ADI capex-light TSMC outsource model
- Q4 2024 GM: TI 58.14%, STM 37.7%, IFX 39.2%, ADI 58.0%
- The Analog Giant's Rebirth: A Comprehensive Research Feature on TXN — FinancialContent
- TXN narrative framing entering 2026: capex-cycle to harvest-mode transition
- Analog $14B FY25 revenue; embedded $2.7B
- TI & Silicon Labs: a strategic move reshaping the embedded & wireless landscape — Yole Group
- Wireless 'front end' of connected systems: protocols, certification, software stacks
- Embedded MCU + wireless platform consolidation context
- Trendforce — TI to Receive USD 1.6 Billion Funding for Building Three 300mm Fabs (Aug 2024)
- Independent CHIPS Act terms corroboration
- Sherman SM1+SM2 + Lehi LFAB2 site allocation
- TXN's Market Share Relative to Competitors, Q1 2025 — CSIMarket
- Analog segment competitive share data Q1 2025
- WSTS Semiconductor Market Forecast Spring 2025
- Analog +7.5% YoY for 2025; total semi +11.2%
- Yole Group Data Center Semiconductor Trends 2025
- AI reshaping compute and analog/power market segments
- Yole Group — Power GaN 2025 (industry report; market share)
- GaN device 2024 share (Yole/BoA): Innoscience ~30%, NVTS ~17%, POWI ~17%, EPC ~12-15%, Infineon ~10%
- TI GaN device share estimated ~5-7% (#5-#6)
- China Analog IC Probe Benefit Chinese Suppliers Electropages
- Chinese beneficiaries: Silergy SGMicro Southchip Joulwatt Novosense
- China launches anti-dumping investigation into analog IC chips from US — Global Times
- Investigation context as retaliation for US Entity List expansion
- Jiangsu Semiconductor Industry Association as filing party
- China Probe on US Analog Chips Could Unlock USD350 Million Market for Local Firms — Yicai Global
- $350M Chinese domestic-market capture potential from MOFCOM probe outcomes
- Investigation 1-year duration framing
- China tariff investigation analog chip Bernstein Yahoo Finance
- Bernstein: TXN 11.4% revenue exposure China antidumping probe; ADI 7.8%; ON 10.2%
- China's Latest Analog IC Probe To Benefit Chinese Suppliers — Electropages
- Chinese domestic-share beneficiaries: SG Micro, 3PEAK, Silergy, Southchip, Joulwatt, Novosense
- Chinese analog chip vendors brace for impact as Texas Instruments slashes prices — JW iJiwei
- TI broad price reductions in China analog 2024-2025
- Chinese competitors named: SG Micro, Bright Power, Awinic — power management primary target
- Data center boom continues to buoy Texas Instruments — Manufacturing Dive (Q1 2026)
- Q1 2026 data-center growth and Silicon Labs deal context
- Industrial / automotive / data-center mix at 75% of revenue
- MPWR Falls Amid Risk to Nvidia Allocation, Edgewater Research Reports — Yahoo Finance
- Infineon projected 60-70% share of NVIDIA Blackwell power management
- Renesas projected 'meaningful' share gains in NVIDIA digital power for Blackwell/Hopper
- Competitive structure for AI-DC PMIC sockets
- NVIDIA Developer Blog — Building the 800 VDC Ecosystem for Efficient, Scalable AI Factories
- NVIDIA 14-vendor 800V silicon-partner list including TI alongside NVTS, Infineon, EPC, MPS
- Participation, not exclusivity
- Semiconductor Today — TI adds 200mm GaN power semiconductor production in Japan (Oct 2024)
- Independent corroboration of Aizu 200mm GaN qualification
- 4× internal GaN capacity claim
- Texas Instruments breaks ground on new 300-mm semiconductor wafer fabrication plant in Utah (LFAB2; Nov 2, 2023)
- $11B LFAB2 investment
- First production target 2026
- 100% renewable; ~800 additional jobs
- Texas Instruments opens its second assembly and test factory in Melaka, Malaysia (Nov 2025)
- Confirmation of seven A/T sites globally
- Melaka second fab opens Nov 2025
- Texas Instruments plans to invest more than $60 billion to manufacture billions of foundational semiconductors in the U.S. (Jun 18, 2025)
- $60B+ headline US investment plan
- Sherman + Lehi + Richardson sites anchor the reshoring footprint
- Texas Instruments Q1 2026 earnings beat on AI data center demand — Yahoo Finance
- Data center segment +90% YoY in Q1 2026
- AI data center demand a primary growth driver
- Texas Instruments Q1 2026 Earnings Yahoo Finance
- Q1 2026 4.83B +19% YoY; analog +22%; data center +90%; industrial +30%
- Texas Instruments sees data center revenue surge 50% — Digitimes (Sep 2025)
- TI data-center revenue trajectory 2025; >$1B FY25 forecast
- Texas Instruments signs preliminary agreement to receive up to $1.6 billion in CHIPS Act proposed funding (Aug 16, 2024)
- $1.6B CHIPS direct grant for SM1, SM2, LFAB2
- Estimated $6-8B Investment Tax Credit (Section 48D) on qualified manufacturing investments
- TI announces award agreement for CHIPS and Science Act funding — TI.com (Dec 20, 2024)
- $1.6B CHIPS Act direct funding award
- Three 300mm fabs: Sherman SM1+SM2 (Texas), Lehi LFAB2 (Utah)
- Investments through 2029 underwritten
- TI begins production at Sherman, TX 300mm fab (SM1) — TI.com
- Sherman SM1 in production December 2025 — 'tens of millions of chips per day' at full ramp
- 65nm-130nm analog/embedded process technologies
- TI expands internal manufacturing for GaN, quadrupling capacity — TI.com (Oct 24, 2024)
- 200mm GaN production at Aizu Japan + Dallas Texas — 4x capacity expansion
- 300mm GaN pilot complete; processes transferable to 300mm
- Target >95% internal GaN manufacturing by 2030
- TI Plans Broad Price Hike on 3,300+ Parts — E-Z-Key (Jun 2025)
- TI raised prices on 3,300+ parts in 2024 — selected legacy products
- TI signals 70% data center growth as industrial, automotive, and data center reach 75% of 2025 revenue — Seeking Alpha
- FY25 data-center revenue $1.5B +64% YoY = 9% of total revenue
- Industrial / automotive / data center = 75% of FY25 revenue
- Haviv Ilan: data center could reach 20% of total sales 'soon'
- TI signals slower semiconductor market recovery — Manufacturing Dive (Q3 2025)
- Industrial / automotive / data center = 75% of FY25 revenue
- Q3 2025 semiconductor recovery framing
- TI Slashes 2026 CapEx Outlook, Targets $8+ FCF/share — Yahoo Finance (Capital Management Review, Feb 2026)
- 2026 capex guide $2-3B vs $4.6B in 2025 — six-year elevated cycle ending
- FCF/share doubled to $3.20 in 2025; targeting $8+/share for 2026
- Path to >95% internally sourced wafers (>80% on 300mm) by 2030
- + 1 more
- TI to acquire Silicon Labs — TI.com (Feb 4, 2026)
- $7.5B EV all-cash; $231/share; ~30% premium
- Closing H1 2027
- $450M cost-synergy target within three years post-close
- + 1 more
- TI to acquire TSMC customer for $7.5B — Manufacturing Dive (Silicon Labs deal context)
- Silicon Labs is a TSMC outsource customer — TI absorbs into vertical fab footprint
- Embedded processing competitive context
- TI Unveils 800VDC Power Architecture for AI Data Centers at NVIDIA GTC 2026 — EverythingPE
- Complete 800V power architecture details at NVIDIA GTC 2026
- TI unveils complete 800 VDC power architecture for AI data centers with NVIDIA — TI.com (Mar 16, 2026)
- TI 800V architecture: 800V hot-swap, 800V-to-6V isolated bus converter at 97.6% peak efficiency / >2000W/in³, 6V-to-<1V multiphase buck
- Complete BOM offer at NVIDIA GTC 2026: 30kW 800V AC/DC PSU, 800V capacitor bank with EDLC supercaps at 40W/in³
- Two-stage architecture (vs Navitas single-stage), positioned as TI's vertical-integration flagship product
- Tom's Hardware — New Texas Instruments fab will pump out tens of millions of chips per day (Dec 2025)
- SM1 first-production date Dec 17 2025
- 3.5-year build cycle from May 2022 ground-break
- TrendForce — Innoscience Scores Major Patent Win Against Infineon as ITC Rules No Infringement (December 5, 2025)
- ITC §337-TA-1407 ALJ initial determination December 2025 — two patents not infringed
- Final determination scheduled April 2, 2026
- Cross-cohort GaN IP enforceability read-through; relatively favorable to TI vertical-integration moat
- TXN Q1 2026 Earnings Highlights GuruFocus
- Q2 2026 guidance above seasonal; EPS 1.77-2.05
- AEC (Automotive Electronics Council) — AEC-Q100, AEC-Q101 qualification standards
- AEC-Q100 IC qualification baseline; AEC-Q101 discrete-device qualification
- TI's broadest AEC-Q-qualified analog/embedded portfolio in industry — design-in moat
- AI Diffusion IFR (90 FR 4544, January 13, 2025)
- Country-tier framework for advanced AI accelerators
- TI products outside scope; cohort regulatory differential vs NVDA/AVGO
- Analog Recovery 300mm Moat Simply Wall St
- 300mm ~40% lower per-die cost vs 200mm; 2.5x chips per wafer
- AVGO/customer.md — comparative concentration / contract structure frame
- Hyperscaler concentration comparative frame: AVGO has named >10% customers (Apple ~20%, Google ~10-12%); TXN has none — anti-AVGO concentration profile
- Contract structure comparative frame: AVGO has formal RPO + multi-year ASIC tape-outs + ELA-locked software; TXN has socket-level switching cost as moat substitute, no formal RPO
- Demand quality comparative frame: AVGO has clean pull-through with some Tomahawk pre-buy; TXN has majority direct pull-through with bounded ~20% distribution channel-fill exposure
- Barclays via X (Jukan) — power semi BOM $140k per AI rack 1MW; 14-vendor 800V partner list
- Power semi content per rack scaling 10x to $140k for 1MW racks
- GaN ~30% / SiC ~10-15% of BOM; 14 vendors named in NVIDIA 800V program (TI included)
- BestAnchorStocks — TI 2025 Capital Management Update analysis
- Independent analysis of TI capital plan; FCF/share trajectory; capex cycle ~70% complete
- BIS Advanced Computing IFR (87 FR 62186, October 7, 2022)
- Original advanced-computing TPP / performance-density thresholds
- TI's analog and embedded products fall outside scope (foundational baseline)
- BIS December 2, 2024 HBM rule (89 FR 96790)
- HBM density thresholds for FDPR coverage
- TI not affected — no HBM product line
- BIS Export Controls on Semiconductor Manufacturing Items update (88 FR 73424, October 17, 2023)
- Tightened TPP, removed performance-density safe harbor
- FDPR extension; H20 origination
- Reaffirms TI products outside advanced-computing scope
- China Initiates Antidumping Duty Investigation into Analog Chips from the US — US ITA / Trade.gov
- US government acknowledgment of MOFCOM investigation
- Investigation timeline and procedural framing
- CHIPS and Science Act of 2022 (P.L. 117-167)
- Statutory basis for §9902 direct grant program and §48D Advanced Manufacturing ITC
- 10-year PRC advanced-node guardrail codification
- Cohort companies.json TXN entry (v2, 2026-05-04)
- TXN cohortRationale: vertical-integration anchor in three-way GaN race; spans chip→board through analog/embedded power management content
- TXN catalysts: 95%+ internal manufacturing target by 2030; 200mm production / 300mm pilot complete; Morroni EV-to-rack supply-chain crossover; embedded-analog destock-to-restock cycle absorbing under-utilized capacity
- TXN risks: capex-heavy vertical integration carries cyclical risk; vertical-integration bet may underperform Infineon scale or Navitas density
- Cohort companion — AVGO market memo (TAM triangulation methodology)
- Cohort TAM frame methodology — triangulate independent vs company-disclosed sizing
- Cohort companion — NVTS market memo (bifurcated GaN frame)
- Discrete vs IC tier bifurcation in GaN; Yole DC GaN $380M 2030 anchor; cycle calendar 2027-2030
- Cohort
corpus.md— Note 1 'The AI Power Crisis — Part 2' (TXN/Morroni references)- Direct quote (line 100): 'As TI's Jeffrey Morroni put it, the technology and semiconductor infrastructure that safely supports an 800V EV looks very similar to what an 800V rack infrastructure needs.'
- Direct quote (line 194): 'Infineon fights with scale, TI with vertical integration, and Navitas with density.'
- Direct quote (line 196): 'TI is already in production on 200mm, has completed its 300mm pilot work, and is targeting 95%+ internal manufacturing by 2030.'
- + 1 more
- Cohort
refinement-log.md— C-NVTS-1 cross-ticker brief for TXN- Cross-ticker learning #1 for TXN: 'Address TI's GaN vertical strategy head-on. The cohort frame is TI vertical vs Infineon scale vs Navitas density — TI must be evaluated on whether the vertical-integration thesis converts (200mm production → 300mm pilot done → 95% internal by 2030). The March 2026 800V-to-6V product (97.6% efficiency, >2000W/in³) is an anchor.'
- Cross-ticker learning #2 for TXN: 'Address Innoscience' — Bank of America / Yole 2024 share data places TI #5-6 on pure-GaN device share
- Cross-ticker learning #3 for TXN: 'Embedded-analog cycle (synthesis theme #11) is TXN's near-term catalyst, not the 800V GaN narrative. Don't conflate.'
- + 1 more
- Cohort sibling — AVGO/macro.md (macro lens)
- Equity-duration baseline for cohort comparison (AVGO higher duration than TXN, both materially lower than NVTS)
- Cohort-typical fabless + TSMC FX profile (USD revenue / TWD cost) — contrast with TXN US-fab vertical model
- ASIC pricing-power baseline transferable to TXN's analog ASP-stickiness analysis
- Cohort sibling — NVDA/macro.md (macro lens)
- Hyperscaler operating-cash-flow funding model — basis for TXN AI-DC rate-insulation argument
- AI-capex super-cycle modal expectation (~$600B / ~50 GW 2026 hyperscaler capex)
- Taiwan-tail revenue-magnitude framing for cohort-relative comparison
- Cohort sibling — NVTS financial.md (pair-trade counterweight)
- NVTS at 82.7x EV/Sales vs TXN at 14.4x — opposite valuation poles in same cohort
- NVTS bear case -75%, bull case +150% — pair break-point at TXN ~$210
- TXN as cohort anchor with bounded downside vs NVTS architectural optionality
- Cohort sibling — NVTS/macro.md (carry-forward C-NVTS-1 brief)
- C-NVTS-1 finding: NVTS amplifies (does not hedge) cohort Taiwan-tail and AI-capex concentration
- TXN identified as candidate primary cohort macro hedge — direct carry-forward instruction
- Cohort Taiwan-tail probability framing inherited (2–4%/yr kinetic, 5–8%/yr blockade)
- + 1 more
- Cohort sibling — WOLF/macro.md (macro lens)
- Auto-loan rate channel for EV end-market modeling — mechanism applied to TXN auto segment
- CHIPS / IRA cost-side tailwind framework — extended to TXN's $1.6B + 25% ITC analysis
- US-domestic fab footprint as Taiwan-tail hedge — extended to TXN US-fab analysis
- + 1 more
- Cohort Synthesis (semiconductor-industry/synthesis.md) — macro lens
- Section 0 cohort scope decision and TXN deep-dive promotion under chip-to-grid framing
- Section 3 theme #1 (voltage-stack redesign at every layer simultaneously)
- Section 3 theme #3 (GaN/SiC competitive structure: 'Infineon scale, TI vertical, Navitas density')
- + 5 more
- Cohort synthesis — chip-to-grid value chain, GaN three-way race, supply-chain-chose-800V, embedded-analog cycle, Taiwan-tail Open Question
- TXN at L8b/L8c spans chip→board
- Section 3.3 GaN three-way race: TI vertical / NVTS density / Infineon scale
- Section 7 Open Question §1: Taiwan-tail concentration as cohort's biggest unhedged risk
- Cohort synthesis.md (semiconductor-industry, 2026-05-04 refresh) — TXN-relevant sections
- Section 2 value-chain map: TXN positioned at L8b (high-density GaN conversion) + L8c (board-level VRM/BCM/eFuse analog power management) — only deep-dive name spanning both layers
- Section 2 L8c row explicitly names MPWR at 'last-mm VRM' — establishes MPWR as named share-gainer at AI-server VRM
- Section 3.3 GaN three-way race: 'Infineon scale, TI vertical, Navitas density'
- + 2 more
- Department of Commerce — Biden-Harris Administration Announces Preliminary Terms with Texas Instruments (Aug 2024)
- Government-side disclosure of TI CHIPS Act terms
- Mature-node and current-generation chip capacity expansion framing
- Department of Commerce — Preliminary Memorandum of Terms with Texas Instruments ($1.61B CHIPS Act direct funding, August 16, 2024)
- $1.61B CHIPS Act §9902 direct funding award; final binding agreement signed December 20, 2024
- Sherman SM1/SM2 (Texas) + Lehi LFAB2 (Utah) project scope
- Capacity covenants, buyback restriction (5-year), excess-profits clawback up to 75%, 10-year PRC advanced-node guardrail
- Edge AI Vision — Microcontrollers $34B by 2030, 6% CAGR
- MCU TAM $34B by 2030 at 6% CAGR; Auto MCU $13B by 2030
- Electropages — China's Analog IC Probe to Benefit Chinese Suppliers
- Mechanical share-transfer mechanism described; consequences for Western analog IDMs
- EU CSRD / ESRS reporting framework
- Corporate Sustainability Reporting Directive applicability to TI EU subsidiaries
- Wave-1 thresholds — Freising, Munich, Reading, Nice operations
- EU Regulation 2021/821 (Dual-Use Regulation, recast)
- EU dual-use export controls
- TI products outside scope — minimal incremental burden
- Findchips — Gap between Chinese and overseas signal chain manufacturers
- China local players concentrated in mid-to-low-end; SG Micro $513M LTM (Sep 2025)
- Futurum Group — Analog Devices Q1 FY 2026: Broad-Based Recovery
- ADI Q1 2026 industrial +38% YoY; comms +63% YoY; cycle confirmation independent of TI
- Futurum — Texas Instruments Q4 FY 2025 Earnings Highlight Industrial, Auto, DC
- Q4'25 segment performance — analog +14%, embedded +8%, DC +64%; FY25 industrial +12%
- IC Insights / SMM — Texas Instruments Analog IC 19% in 2021
- TI peak analog share data point ~19% in 2021 — reference for share trajectory 2021-2025
- IEC 61508 — Functional safety standard
- Industrial functional-safety certification framework
- TI MCU and isolated-driver family compliance
- IEC 62443 — Industrial communication networks security
- Industrial cybersecurity certification levels
- TI Sitara industrial Linux and connectivity portfolio compliance
- Industrial Analog Semis TXN vs ADI TechInvestments
- ADI fab-light vs TXN IDM comparison; industrial analog moat framing
- Industry analyst consolidated TXN segment / customer / channel models (Bernstein, Citi, Morgan Stanley, BofA Global Research)
- AI-server analog content per server estimated ~$50-150 (8-GPU baseline) + $200-400 per AI rack at platform level (industry analyst aggregation; not TI-disclosed at SKU level)
- Auto Tier-1 named set within Automotive segment (~70-80% of segment revenue): Bosch, Continental, Denso, ZF, Aptiv, Magna, Forvia, Valeo, Mando, Hyundai Mobis, plus auto OEM direct relationships
- Estimated top 5 customer concentration ~15-18% of revenue; top 10 ~25-30% (consistent with TI's >40%-outside-top-100 disclosure)
- + 1 more
- INTC regulatory analysis — §48D ITC scale and CHIPS covenants comparator
- §48D ITC scaling methodology
- CHIPS buyback / dividend / clawback covenant interpretation
- Investing for Beginners 101 — Publicly Traded Analog Semiconductor Spring 2024
- Top-5 analog share TTM: TI/IFX 19.5%, ST 19.1%, NXP 15.4%; HHI computation source
- Investing.com — TI Q4 2025 earnings call transcript
- Q4 2025 segment commentary; Q1 2026 guidance $4.3-4.7B; ASP discipline preserved through trough
- IRS — Advanced Manufacturing Investment Credit (Section 48D guidance)
- ITC mechanics: 25% (now 35%) of qualified property
- Placed-in-service after Dec 31 2022 to qualify
- ISO 26262 — Road vehicles functional safety
- Functional safety certification framework (ASIL grades)
- TI Jacinto TDA4, AWR/IWR radar, Hercules safety MCU portfolio compliance
- Macro regime baseline (general-knowledge synthesis, 2026-05-04)
- US 10y ~4.0–4.5% / Fed funds 3.75–4.25% / 5y real ~1.5–2.0%
- DXY mid-100s; EUR/USD trading 1.05–1.12 range
- Auto-loan rate environment 2023–2026 suppressing US/EU EV unit demand by ~5–10% per 100bp
- + 3 more
- MOFCOM Spokesperson on Anti-Dumping Investigation into Analog IC Chip Imports from US (Sep 13, 2025)
- MOFCOM antidumping investigation initiated September 13, 2025
- TI and ADI named as primary import respondents
- Cumulative 51.77% Chinese market price decline 2022-2024 cited as injury
- + 1 more
- Mordor Intelligence — Analog IC Market
- Analog IC TAM $83.8B in 2025; mid-single-digit CAGR 2025-2030
- NIST CHIPS Program Office
- CHIPS Act §9902 direct grant program structure
- Milestone audit framework for disbursement tranches
- Standard guardrails (buyback / dividend / PRC expansion / clawback)
- NVDA regulatory analysis — BIS export-control scope comparator
- BIS advanced-computing rule scope demonstration
- Cohort regulatory differential — TI relative insulation in analog/embedded category
- NVIDIA Developer Blog — 'NVIDIA 800 V HVDC Architecture Will Power the Next Generation of AI Factories' (May 2025)
- Infineon named lead partner in NVIDIA 800V HVDC ecosystem (May 2025); Navitas named ecosystem partner; TI not named at that time
- Establishes the named-partner gap that the March 16 2026 NVIDIA GTC complete-architecture announcement subsequently closed for TI at the architecture-anchor level
- Cross-checked through May 2026: no public Vertiv-TI / Eaton-TI / Schneider-TI / Delta-TI 800V GaN reference-design joint announcement found at the box-builder level
- NVTS regulatory analysis — subsidy asymmetry comparator
- NVTS receives zero CHIPS direct grant or DOE LPO; TI receives $1.61B + ~$4.5B §48D
- Subsidy-disadvantage asymmetry directly cited per refinement-log C-NVTS-1
- NVTS supply-chain analysis — TSMC GaN exit by July 2027, foundry transition framing
- TSMC ends GaN foundry by end-July 2027
- NVTS triple-foundry transition (PSMC + GF Burlington + X-Fab) — the 'two halves of the same story' brief
- TXN vertical integration as the structural hedge to NVTS foundry-loss
- NVTS/customer.md — Reference-Design Partners cross-reference
- Cross-reference establishing the 800V GaN named-partner gap as of late April 2026: NVTS customer analyst found no public Vertiv / Eaton / Schneider / Delta reference design naming Navitas at the GaN partner level
- Same gap applied to TXN at the box-builder level pre-March 2026; TI's March 16 2026 NVIDIA GTC complete-architecture announcement closes the gap at the architecture-anchor level (NVIDIA itself); box-builder-level disclosure remains pending
- C-NVTS-1 cross-ticker brief: 'reference-design partner naming is the critical disclosure for the cohort'
- Peer valuation — Analog Devices (ADI) statistics
- ADI: $194B mcap, 16.9x EV/Sales, 36.3x EV/EBITDA, 33.1x forward P/E, 2.4% FCF yield, 1.1% dividend yield
- Peer valuation — Microchip (MCHP) statistics
- MCHP: $51B mcap, 12.8x EV/Sales, 57.1x EV/EBITDA, 38.6x forward P/E, 1.6% FCF yield, 1.9% dividend yield, 6.3% operating margin (cyclical bottom)
- Peer valuation — Monolithic Power Systems (MPWR) statistics
- MPWR: $78B mcap, 25.9x EV/Sales, 89.4x EV/EBITDA, 62.5x forward P/E, 0.5% dividend yield — closest AI-DC narrative comp
- Peer valuation — NXP Semiconductors (NXPI) statistics
- NXPI: $74B mcap, 6.5x EV/Sales, 17.2x EV/EBITDA, 18.8x forward P/E, 3.6% FCF yield, 1.4% dividend yield — relative-value standout in comp set
- Peer valuation — ON Semiconductor (ON) statistics
- ON: $41B mcap, 6.9x EV/Sales, 23.7x EV/EBITDA, 35.1x forward P/E, 3.5% FCF yield, no dividend
- Power Semis in the AI Data Center TechInvestments
- Infineon 12k-15k per 130kW rack; Onsemi 50k-100k per MW next-gen
- Refinement log — C-NVTS-1 carry-forward
- Subsidy asymmetry citation requirement (NVTS zero CHIPS, TI $1.61B)
- April 2, 2026 ITC Infineon-v-Innoscience FD as cross-cohort GaN IP catalyst
- SEC Final Rule — Climate-Related Disclosures for Investors (March 2024)
- Reg S-K Subpart 1500 climate disclosure requirements
- Status: stayed pending Eighth Circuit consolidated litigation
- AI-DC cross-exposure mechanism (Scope 2/3 customer disclosure pulling through to energy-efficient power-semi design-in)
- South China Morning Post — Chinese analogue chipmakers join price hikes
- China local analog (SG Micro etc.) pricing dynamics; substitution narrative validated
- Stanford Securities Class Action Clearinghouse
- TXN securities class action docket review (FY2022/FY2023 inventory disclosure cases)
- Strait Research — Embedded Processor Market
- Embedded processor TAM $24.8B (2025) → $39.9B (2033) at 6.1% CAGR
- Successful Daily — TI Q1 settles analog inventory question
- Q1 2026 inventory days normalized into long-run band; destocking ended Q1; cycle resumed above prior peak
- Texas Comptroller of Public Accounts — Chapter 313 / Texas Jobs and Security Act (HB 5) value-limitation agreements
- Sherman site state/local incentive package — ~$340M PV
- Texas Enterprise Fund + property-tax abatement structure
- Texas Instruments $60B U.S. fab investment plan announcement
- $60B+ planned investment across 7 U.S. fabs / 3 mega-sites (Texas + Utah)
- Sherman site alone up to $40B
- Analog and embedded processing chip production focus
- Texas Instruments 2025 Capital Management Review (Feb 2025)
- Industrial+auto ~70% of revenue (vs ~40% prior cycle); 95%+ internal manufacturing target by 2030
- TI SAM frame >$60B post-2030 (company definition incl. embedded)
- Texas Instruments begins production at Sherman 300mm fab
- Sherman SM1 in production (2025); SM2 shell complete; Lehi LFAB1 ramping at 45-65nm; 28nm qualification underway
- Texas Instruments Capital Management Review (Haviv Ilan, CEO)
- Free cash flow per share is the primary metric for measuring shareholder value creation
- Dividend grows every year regardless of cycle (22-year streak)
- Buybacks opportunistic and suspended during capex peak
- + 3 more
- Texas Instruments CHIPS Act funding award (December 2024)
- Up to $1.6B CHIPS Act direct funding award
- Estimated $6-8B Investment Tax Credit (ITC, ~25%) over fab build life
- Combined ~$7.6-9.6B subsidy offset against $60B+ headline capex commitment
- Texas Instruments Citizenship Report FY2024
- Scope 1 ~1.6 Mt CO2e; Scope 2 ~3.4 Mt CO2e
- Water reclamation targets; Sherman site environmental commitments (>80% recycle target)
- 95th-percentile peer disclosure
- Texas Instruments February 2026 Capital Management Review coverage (Yahoo Finance)
- 2026 capex slashed from $4.6B (FY25) to $2.0-3.0B guide
- FY2025 actual FCF/share: $3.23
- FY2026 target: $8+ FCF/share
- + 2 more
- Texas Instruments FY2025 Annual Report and Notice of 2026 Annual Meeting
- FY2025 revenue $17.7B (+13% YoY)
- FY2025 free cash flow $2.6-2.9B / 14.7% of revenue (+96% YoY)
- FY2025 capital expenditures $4.6B
- + 3 more
- Texas Instruments — TPS1685 48V hot-swap eFuse press release (Mar 2025)
- TPS1685 industry-first 48V integrated hot-swap eFuse with power-path protection
- LMG3650R series GaN power stages: 650V, >98% efficiency, >100W/in3
- The AI Power Crisis — Part 2 (cohort vault note, ingested 2026-05-03) — macro/Morroni anchor
- Direct corpus quote: 'TI is already in production on 200mm, has completed its 300mm pilot work, and is targeting 95%+ internal manufacturing by 2030'
- Morroni quote: 'the technology and semiconductor infrastructure that safely supports an 800V EV looks very similar to what an 800V rack infrastructure needs'
- Competitive frame: 'Infineon fights with scale, TI with vertical integration, and Navitas with density'
- + 1 more
- The Register — AI gobbling up power and management chips for servers (Apr 2026)
- Power-management chip demand inflection driven by AI servers
- TI / Vertiv 5.5kW server PSU reference design
- Vertiv PowerDirect Rack DC powered by TI GaN technology delivers up to 132kW per rack
- TI Capital Management investor materials (capex roadmap, depreciation, internal-mfg framing)
- Capex roadmap; 95% internal mfg target framing
- Effective subsidy stack treatment
- Depreciation guidance ($1.8-2.0B for 2025)
- TI Capital Management Review presentation — Haviv Ilan / Rafael Lizardi (Feb 2026)
- Capital management framework: maximize long-term FCF/share growth
- RFAB2, LFAB1, Sherman fab roadmap
- Manufacturing-leverage thesis underwriting Silicon Labs synergies
- TI gallium nitride (GaN) — product/technology page
- 300mm GaN status: 'delivering customer samples' — sampling, not production-qualified for HVM
- Important caveat: don't conflate sampling with production qualification
- TI Lehi, Utah: 300mm wafer fabs (manufacturing site disclosure)
- LFAB1 acquired from Micron Q4 2021; production Q4 2022
- LFAB2 broke ground Nov 2 2023; first production target 2026
- Starting nodes 65nm/45nm analog/embedded; expandable beyond
- TI Q4 2025 financial results press release (Jan 27, 2026)
- Q4'25 revenue $4.42B, EPS $1.27
- FY25 capex $4.6B; 2026 guide $2-3B
- FCF $2.9B (+96% YoY) including ~$670M of CHIPS / ITC cash benefits in 2025
- TI reports Q4 2025 and 2025 financial results
- Q4 2025 analog $3.6B +14% YoY; embedded $662M +8%; data center $1.5B +64% YoY (~9% of total)
- FY25 capex $4.6B; FY26 guide $2-3B (capex tapering)
- TI Sherman, Texas: 300mm wafer fabs (manufacturing site disclosure)
- SM1 in production Dec 17 2025 (3.5-year build)
- SM2 shell complete; cleanroom + tools begin 2026
- SM3-SM4 sequencing through end of decade
- + 2 more
- TI worldwide manufacturing overview (company-page disclosure)
- Seven captive A/T sites globally: Aguascalientes (MX), Chengdu (CN), Kuala Lumpur (MY), Melaka×2 (MY), Baguio (PH), Pampanga/Clark (PH), Aizu (JP), Miho (JP)
- Wafer fab list: Sherman (SM1-SM4), Lehi (LFAB1-2), Richardson (RFAB1-2), Dallas (legacy 200mm + GaN), Aizu, Miho
- Cheonan, Korea NOT listed as a TI manufacturing site (corrects prompt assumption)
- TIKR Blog — Texas Instruments 2025 free cash flow doubled analysis
- FY2025 FCF/share $3.23 (up 97% YoY from $1.63 in FY2024)
- Capex $4.6B in 2025 → $2-3B guide for 2026 (end of 6-year elevated investment cycle)
- Depreciation $1.9B in 2025 → $2.2-2.4B in 2026 (~$400M step-up)
- + 1 more
- Tom's Hardware — Semiconductor giga cycle as AI rewrites compute
- AI-driven structural cycle context; giga cycle framing for forward semi outlook
- Tom's Hardware — TI Sherman fab background, $60B program
- $60B 6-year capex program; tens of millions of chips per day capacity at Sherman
- Treasury / IRS Final Rule — §48D Advanced Manufacturing Investment Credit (26 CFR Part 1)
- 25% refundable Advanced Manufacturing ITC on US semiconductor capex placed in service from January 1, 2023
- Final rule issued October 23, 2024
- Recapture mechanics on PRC-guardrail violations
- + 1 more
- TSM regulatory analysis — Section 232 / CHIPS PMT covenant comparator
- Section 232 framing methodology
- CHIPS Arizona PMT covenants comparable to TI Sherman/Lehi
- TSM supply-chain analysis — Taiwan-tail framework, tier-2 chokepoint analysis
- Cohort baseline for Taiwan exposure (~92% TSMC vs <5% TXN)
- Tier-2 chokepoints (ZEISS, Inpria, Aixtron) with TXN's differential exposure (no EUV → no ZEISS/Inpria; Aixtron is the only shared chokepoint)
- TXN income statement, cash flow, balance sheet, statistics — StockAnalysis.com
- FY21-FY25 revenue / margin / earnings time series (rev: $18.3B / $20.0B / $17.5B / $15.6B / $17.7B)
- FY21-FY25 OCF / capex / FCF time series (FCF: $6.3B / $5.9B / $1.3B / $1.5B / $2.6B)
- FY22-FY25 balance sheet: cash drained $9.1B → $4.9B; total debt $8.7B → $14.0B; flipped to net debt $9.2B
- + 3 more
- TXN Q3 2025 earnings call transcript (October 21, 2025)
- Q3'25 revenue +14% YoY / +7% sequential
- Q3'25 industrial +25%, auto +upper-single-digits, comms +45%, enterprise +35% all YoY
- Q3'25 Analog +16% YoY, Embedded Processing +9% YoY
- + 2 more
- TXN Q4 2025 earnings call transcript (January 27, 2026)
- FY2025 segment revenue: Analog +14% YoY, Embedded Processing +8% YoY
- FY2025 end markets: Industrial $5.8B (+12%), Auto $5.8B (+6%), Personal Electronics $3.7B (+7%), Data Center $1.5B (+64%), Comms ~$500M (+20%)
- FY2025 CHIPS Act cash benefit received: $670M
- + 2 more
- US Customs and Border Protection — CSMS #67400472 Section 232 import-duty guidance
- Section 232 implementation mechanics and HTSUS application
- USTR — Section 301 China Tariff Actions (Four-Year Review and modifications)
- Section 301 List 4A baseline rates
- 50% rate increase on HTSUS 8542-class semiconductor subheadings effective January 1, 2025
- Bidirectional tariff exposure framing for TI Chengdu assembly and US-origin shipments to China
- Utah Governor's Office of Economic Opportunity — EDTIF program
- Lehi LFAB2 Economic Development Tax Increment Financing
- ~$150-200M PV state/local incentives
- Uyghur Forced Labor Prevention Act (P.L. 117-78)
- UFLPA enforcement framework; Xinjiang rebuttable presumption
- Indirect gallium upstream sourcing exposure for GaN supply chain
- Vault corpus — Morroni quote and three-way GaN competitive frame
- Jeffrey Morroni (TI): 'the technology and semiconductor infrastructure that safely supports an 800V EV looks very similar to what an 800V rack infrastructure needs'
- Competitive frame: 'Infineon fights with scale, TI with vertical integration, and Navitas with density' (AI Power Crisis Part 2)
- TI 200mm in production, 300mm pilot complete, 95%+ internal manufacturing target by 2030
- White & Case — President Trump orders narrowly targeted 25% Section 232 tariff on certain advanced semiconductor articles (January 2026)
- Section 232 narrow-scope analysis
- Derivative-product expansion contemplated; relative-cost asymmetry vs EU-origin parts
- White House Proclamation — Section 232 narrow tariff on advanced computing semiconductors, January 14, 2026
- 25% Section 232 narrow scope on H200/MI325X-class advanced computing semiconductors
- TI's analog and embedded products explicitly out of scope
- Explicit contemplation of derivative-product scope expansion
- WSTS Fall 2025 Forecast
- $975.5B 2026 global semis; analog moderate recovery 2026 vs Logic/Memory steepness
- WSTS Spring 2025 Forecast
- Analog +7.5% growth in 2025; global semis $772.2B 2025
- Yicai Global — China Probe on US Analog Chips $350M unlocked pool
- Sept 2025 Chinese MOFCOM anti-dumping probe; $350M+ near-term unlocked Chinese pool (Citi)