Texas Instruments Sees Second-Quarter Chip Demand Improving

Texas Instrumentsis on track to report an increase in chip demand in the second quarter compared with the first, Chief Executive Richard Templeton said on Thursday.

Texas Instruments
Texas Instruments

TI, the biggest maker of chips for mobile phones, had said in April that it expected second-quarter earnings and revenue to rise as orders improve, since it had largely worked through an inventory correction that began last year.

"I think you're going to find things tracking pretty much in line with that," Templeton told a Cowen & Co technology investment conference.

Texas Instruments is scheduled to release its mid-quarter update on June 11.

Templeton also said TI would try to keep increasing its dividend yield, which is below that of other companies.

"We think that's an opportunity over time, if we keep performing, to keep challenging that," he told the conference.

"We've increased dividends for four years and our dividends are four times higher than they were four years ago," Templeton told Reuters at the sidelines of the conference.

TI, which competes with companies such as Qualcommin the mobile phone chip market, was due to pay a quarterly cash dividend of 8 cents per share on May 21.