Christopher Caso's questions to TEXAS INSTRUMENTS (TXN) leadership • Q3 2025
Question
Christopher Caso asked what had changed in general market conditions and the recovery pace since the last earnings call, given earlier optimism for a stronger recovery. He also inquired about the thought process behind reducing wafer starts and utilization, how long these lower loadings would be maintained, and what would trigger an increase.
Answer
CEO Haviv Ilan acknowledged that the recovery, initially rapid in Q2, proved to be more moderate and below trend line, attributing it to customer hesitancy due to macroeconomic uncertainty and regulatory clarity, particularly in industrial. He explained that wafer start reductions are a mechanical adjustment to prevent inventory growth with lower revenue, with future increases dependent on revenue and demand over the next 6-12 months.