April 23, 2025 /SemiMedia/ — Texas Instruments (TI) projected second-quarter revenue above Wall Street expectations, signaling robust demand for its analog chips despite growing uncertainty from US-China trade tensions and potential tariffs.

TI forecast revenue between $4.17 billion and $4.53 billion, compared to the analyst consensus of $4.1 billion, according to LSEG. Expected earnings per share are between $1.21 and $1.47, also exceeding estimates.

“Cyclical demand recovery and possible tariff easing have supported the improved outlook,” said Kinngai Chan, senior analyst at Summit Insights.

However, CEO Haviv Ilan cautioned that visibility remains limited. “We have to see what happens in the second half of 2025 and into 2026,” Ilan said during the earnings call, referring to ongoing trade policy uncertainty.

While the U.S. has temporarily exempted some semiconductors from new tariffs, China announced in early April that it would impose high tariffs on American-made chips. This raised concerns among analysts about possible inventory stockpiling by customers. Ilan responded, “In times like these, when people feel anxious, it’s natural to want a bit more inventory on the shelves.”

TI generates about 20% of its revenue from China and has significant manufacturing operations in the U.S., making it vulnerable to tariff-related disruptions. Ilan noted the company could leverage its China-based fabs if necessary.

Chinese chipmakers, supported by government subsidies, are rapidly expanding domestic production of mature-node semiconductors, intensifying competition. “The competitive pressure in China is increasing,” Ilan said.

With geopolitical friction rising, many legacy chipmakers, including TI, are maintaining flexible manufacturing strategies to navigate trade-related risks while continuing to serve demand in key regions.