Texas Instruments Inc. on Tuesday forecast quarterly revenue for the third quarter and missed market expectations, as the chipmaker struggles with supply chain constraints in the semiconductor industry, sending its shares down 4.6%.
The maker of analog and embedded processing chips used in everything from smart phones to cars is facing a shortage of parts used to make the chips, hindering its ability to capitalize on growing demand. .
Chipmakers are spending heavily to ramp up production and address chip shortages, resulting in automakers cutting production and electronic equipment makers struggling with a shift to work from home despite red-hot demand are doing.
The company said it expects revenue between $4.22 billion and $4.58 billion in the fourth quarter. Midpoint fell short of analysts’ average estimates of $4.44 billion, according to Refinitiv data.
Total revenue rose 22% to $4.64 billion from last year’s $3.82 billion, but missed expectations of $4.66 billion.
Shares of the Dallas, Texas-based company were trading at $187.90 in extended trading.
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