Texas Instruments spent years building factories that make its chips more cheaply. In 2026 the cash began flowing back; the question is whether that lasts once demand stops rising.
Turn up a thermostat and a small chip senses the room's warmth. Texas Instruments makes chips like these, called analog chips, which handle real-world signals such as sound, temperature and light and manage power in electronic equipment. It also sells processors that work on that data. Your car may contain some. The company makes most of them in its own factories, so its earnings depend on keeping those plants busy.
The payers are makers of cars, factory machines, data center gear and personal electronics. Most buy directly, which the company says gives it more chances to place several chips in each new design. Analog is the engine: in the third quarter of 2026 it brought in $4.9 billion of revenue and $2.5 billion of operating profit (revenue left after running costs, before interest and taxes). What remains depends on the factories. Buildings and tools are paid for up front, and a plant costs much the same to run whether full or half empty. Larger silicon wafers, the thin discs on which chips are printed, make each chip about 40% cheaper than the older size.
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