According to reports, Texas Instruments said in its fiscal third-quarter financial results that industrial customers are now slowing their orders, but demand in the automotive market remains strong.

Texas Instruments has the largest customer list in the industry, and its forecasts are therefore an indicator of demand across the industry. CEO Rich Templeton said in a statement that during the quarter, they experienced expected softness in personal electronics and expansion of weakness across the industrial segment. Overall, orders deteriorated and cancellations increased as the current quarter progressed.

Rafael Lizardi, Texas Instruments' chief financial officer, said the jury is still out on whether the current drop in demand is simply customers cutting inventories to reduce inventory, or if there are deeper concerns about the economy.

Lizardi also said that Texas Instruments has no plans to slow down the construction of new fabs.