Texas Instruments

Evidence: gross margins remain structurally high through cycles relative to peers, supported by 300mm cost per die advantages and a catalog of differentiated power and signal chain parts where bill-of-material cost is small relative to system value.

In tight cycles TI has historically realized better pricing; in slack cycles, structural costs preserve margins. Recent margin compression is primarily from planned depreciation and reduced factory loadings rather than broad price erosion. TI’s direct channel and broad portfolio enhance mix management.

Latent power remains as industrial and automotive content per unit rises, and TI’s growing presence in data center power and sensing adds higher-value sockets. Risks: price competition in commoditizing categories, customer dual-sourcing, and auto OEM pricing pressure.