Texas Instruments (TI) said revenue fell 11 percent to $4.38 billion in the quarter ended March 31 from a year earlier, declining the most in the last ten quarters.
“Revenue decreased 6 percent sequentially and decreased 11 percent from the same quarter a year ago. We experienced weakness across our end markets with the exception of automotive, as expected,” Haviv Ilan, TI’s president and CEO, said.

TI’s revenue from Analog business fell 14 percent to $3.289 billion. TI’s revenue from embedded processing rose 6 percent to $832 million.

The company’s revenue in both the personal electronics segment and the division that caters to data center servers fell 30 percent in the first quarter from the fourth quarter. Industrial market revenue was flat.

TI invested $3.5 billion in R&D and SG&A, invested $3.3 billion in capital expenditures and returned $7.5 billion to owners over the past 12 months.

TI is targeting revenue of $4.17 billion – $4.53 billion in the second quarter of 2023, signaling demand weakness is spreading to most of the analog chipmaker’s end-markets.

TI, which said overstocked customers were purging excess inventory, is facing some trouble as it derives about 70 percent of its revenue from these markets, with industrial comprising about 40 percent.

The glut has also hurt chip prices in the market, pressuring profit margins of chipmakers like Texas Instruments.

Dallas, Texas-based company has forecast capital expenditure to average around $5 billion per year from 2023 to 2026.

Automotive was a bright spot in the first quarter, with revenue up mid-single digits, the company said.

Summit Insights Group analyst Kinngai Chan warned industry checks already indicated a weakening order in the automotive market.