Texas Instruments Incorporated

- No explicit mention of any current or future fundraising through debt or equity in the call. - The company emphasizes strong cash flow generation and capital management. - They generated $6 billion in free cash flow in 2020 and returned all free cash flow to shareholders via dividends and share repurchases. - Balance sheet remains strong with $6.6 billion in cash and short-term investments and $6.8 billion in total debt at a low weighted average coupon of 2.77%. - There is no indication of plans to raise new debt or equity; capital allocation focuses on dividends, share repurchases, and investments in the business. - Any additional funding needs appear to be managed internally from operations and existing balance sheet strength.

- TI's long-term guidance is to spend about 6% of revenue on capital expenditures (capex). - In 2020, capex was lower at 4.5% of revenue but expected to move closer to 6% in 2021. - A new 300-millimeter fabrication plant (fab) is under construction, expected to be completed and start output in the second half of 2022. - This new fab has the potential for revenue in the future once fully equipped. - Government subsidies/incentives for the new fab are uncertain due to pending legislation and funding. - TI views semiconductor manufacturing as foundational and supports any measures to maintain competitive and level playing fields internationally. - Capex can fluctuate year-to-year but analysts are advised to use 6% of revenue as a long-term modeling assumption. (Information from Pages 3 and 4 of the transcript)

- Texas Instruments (TI) expects continued growth driven by strong demand in industrial and automotive markets, which together comprise 57% of revenue. - Industrial and automotive markets are seen as strategic priorities with embedded technology making products smarter and more efficient, driving faster growth than other markets. - Analog and Embedded revenue showed strong sequential and year-over-year growth, indicating demand strength. Analog was up 25% YoY, Embedded up 14% YoY. - The new 300mm fab is expected to start output in the second half of next year, potentially increasing revenue once fully equipped. - TI plans to maintain disciplined capital allocation and invest in competitive advantages like manufacturing and technology to support long-term free cash flow and revenue growth. - Growth is expected to continue, aligned with cyclical recovery and expansion in key end markets, supported by stable supply chains and strategic capacity investments.

- Q1 2021 revenue is expected between $3.79 billion and $4.11 billion. - Earnings per share (EPS) guidance is between $1.44 and $1.60 for Q1 2021. - Operating tax rate expected at about 14%, with effective tax rate about 1 percentage point lower. - Long-term focus is on growing free cash flow per share, which is viewed as the primary driver of long-term value. - Capital expenditures targeted at 6% of revenue over the long term (up from 4.5% in 2020). - Operating expenses to remain within 20%-25% of revenue, historically between 21%-22%. - Gross margin incrementally expected to exhibit 70%-75% fall-through on revenue increases. - Plans to continue investing in manufacturing, technology, and competitive advantages to support sustainable growth.

- Texas Instruments reports strong demand with shipments reflective of customer orders, indicating good product availability. - No significant backlog or inventory issues as the company maintained stable inventories despite supply chain constraints. - Manufacturing capacity is largely internal (80% wafers), giving TI supply chain control and an advantage against foundry tightness. - Long-term agreements with outsourcing suppliers help manage loadings and hot spots in assembly/test and wafer supply. - No specific numeric order backlog disclosed in the call; the emphasis is on meeting current customer demand and maintaining high service levels. - Supply constraints noted elsewhere in the industry do not seem to affect TI’s ability to fulfill orders. - TI expects production from a new 300mm fab to begin in the second half of the next year, potentially increasing capacity.