TXN · Earnings call · 2026Q3T · Full report

Competition and Pricing Pressure

TEXAS INSTRUMENTS INC · 2026-10-21 · Importance 20 · Surprise 24

Management said limited analog capacity additions over the prior four years had tightened supply, particularly for geopolitically dependable capacity outside China and Taiwan, and described TI as well positioned through its continued capacity investment. TI saw some mid-year customer discussions for urgently needed supply and some price movement, mainly in analog, during the second half of 2026, after flat year-over-year pricing in the first half. Most pricing discussions occur annually, and 2027 negotiations were underway around customer demand and supply commitments. Management said those arrangements have a pricing element but deferred further detail until the January results and guidance call.

Key facts

• TI said foundational analog capacity had not increased much in the four years since the previous COVID-era market peak, particularly for geopolitically dependable capacity outside China and Taiwan.
• TI said it remained the most competitive supplier in lead time.