Texas Instruments Signals Broader Chip Recovery Into 2026

Texas Instruments has signaled that the global semiconductor market recovery is extending into 2026, supported by sustained demand from data centers, industrial customers and automotive manufacturers. The US based chipmaker reported higher year on year revenue in the final quarter of 2025, reflecting improving conditions after a prolonged industry slowdown. Company executives said demand trends have remained stable across multiple end markets, allowing Texas Instruments to carry momentum into the new year with sufficient inventory and production capacity. The outlook reinforces a growing consensus that the semiconductor cycle has moved past its trough, even as recovery remains uneven across regions and applications.

Data centers have emerged as a key driver of recent growth, with the segment expanding for several consecutive quarters as cloud and AI related infrastructure spending continues. Texas Instruments executives noted that data center demand is becoming a more meaningful contributor to overall performance, reflecting broader shifts in computing architecture and power management needs. Industrial markets have also shown signs of recovery, with executives pointing to improving order patterns and expectations for new highs over time. Automotive demand remained resilient, accounting for a significant share of revenue, with particular strength reported in China where vehicle electrification and advanced driver systems continue to support chip consumption.

China featured prominently in the company’s assessment of regional performance, especially within the automotive segment. Executives highlighted continued strength in Chinese demand during the quarter, underscoring the country’s importance to global analog and embedded chip suppliers despite ongoing geopolitical tensions. Texas Instruments has invested heavily in manufacturing capacity and production efficiency in recent years, positioning itself to serve recovering markets without aggressive capacity expansion. The company’s comments suggest that while pricing and margins remain under pressure in parts of the industry, volume stability and diversified exposure are supporting a gradual normalization. For China Crunch readers, the update adds to evidence that China linked demand is playing a stabilizing role in the global semiconductor recovery rather than acting solely as a source of volatility.