TXN · Earnings call · 2026Q3T · Full report

Embedded Products and Capacity

TEXAS INSTRUMENTS INC · 2026-10-21 · Importance 47 · Surprise 48

Management said embedded processing revenue grew 21% year over year and described the embedded recovery as roughly a year behind analog, with embedded having peaked in 2023 versus analog’s 2022 peak. Lehi Fab 1 had room to absorb foundry-based production transfers and support growth in coming quarters; the Lehi Fab 2 shell was nearing completion, with tool installations to be paced to demand. TI also cited additional clean-room capacity associated with the Silicon Labs acquisition to support transferring foundry production into TI facilities. Management said the embedded portfolio was growing and that the company saw further room for top-line growth.

Key facts

• TI said Lehi 1 had clean-room capacity available and that it had transferred a lot of foundry-based business into Lehi 1.
• TI said Lehi Fab 2's shell was in the last stages of completion and that tool installations could be modulated according to demand.
• TI said embedded business cyclical recovery was about a year later than Analog's: embedded peaked in 2023, while TI Analog peaked in 2022.
• TI said embedded gross margins had improved by about 10 points year over year, according to the CFO's qualified estimate.