Jan. 26, 2023 /SemiMedia/ -- Texas Instruments recently forecast that its first-quarter revenue and profit would fall well short of Wall Street's targets as the economic downturn could limit demand in its most resilient market.

Smartphones and personal computer products were the first to suffer from the drop in demand as interest rates rose, and sectors such as industrials have also started to come under pressure.

TI said revenue in its industrial business fell 10% in the fourth quarter from the previous quarter, while its communications equipment and enterprise systems business fell 20%. TI expects demand to be less than seasonally down in the current quarter as customers prefer to reduce inventories.

TI CEO Rich Templeton said the automotive market was the only exception to weak demand. However, some analysts said that orders in the auto market have begun to slow, but have not yet turned negative.