By Willlaim Trent, CFA of Stock Market Beat
It seems like less than two weeks ago that Texas Instruments said there wasn’t a serious problem with excess inventory. Now, they say they are cutting back capacity in a big way. From the earnings update conference call:
We reduced production loadings at both our internal factories and at our foundry suppliers. Having a significant part of TI’s production sourced at third party foundries is providing a significant buffer to our profit margins as revenue declines and we adjust production.
Gee. Back in June the foundries said not to worry about inventory either. Whatever will they do with all the excess equipment they have been ordering?
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