We've had a real downward push on the China stocks this week, obviously after the wrap up of the Party Congress, and it's a little difficult to read. Some of the futures are pointing up, but they're not active contracts. And then we had earnings after the bell that disappointed, and that that's what we'll be focusing on here in the next couple of minutes. Texas Instruments, for instance, declining more than five percent in after hours after the company gave
a disappointing quarterly forecast. Joining US now is Ian King Bloomberg new US Semiconductor reporter. So Texas Instruments such an important company, it's a bell weather, it's in so many different areas. I guess this would send a a little bit of disquiet throughout the industry here. Yeah, no, that's
absolutely right. I mean, if you're looking at what's happened in the semi extent or in the largely been companies that heavily depend upon PCs and computers and smartphones that have been the ones saying, you know that demand is really falling quickly. As you point to out, t I is way broader than that, you know, big dependence on Industrial and they said that, you know, orders are being canceled and the orders are declining, and that has you know,
much broader implications. So nothing that different, Or did they say anything different to some of the other companies that
or is it that they're going exactly thing kind of verbued? Yeah, I mean that's a very good question, is I mean, in typical t I fashion, they didn't give an awful lot away and refuse a lot of direct questions, and I you know, I spoke to the CFO afterwards and he said, look, anybody who tells you that this is recession fears or tells you that this is just a steady kind of stickle of the semi conducause where we have what are called these inventory corrections, just doesn't know
what they're talking about, because it's impossible to know. He you know, he said, if it's just an inventory correction, which is fairly typical, you know, every sort of six or so quarters of upside we get a couple of down quarters because people have ordered too much. Then that's one set of circumstance which is frankly on the milder end of the spectrum. If you know, you've got a layer on this other element of people, you know, businesses clumping down on their budgets and cutting back on capex
and investment. And that's where more studious obviously has you know, much deeper potential harm to what's going to happen to the industry. It seems like one of the areas that actually had some strength was automotive. But you know, that's a kind of an interesting situation there because you still have demand that so much stronger than supply, and all the while interest rates are heading up, and you would think that at some point even the automotive industry will
take a little bit of a hit. Yeah, And that was exactly the conversation that that you know t I hide with analysts on the conference caller. You know, they were asked again, how, you know, can we keep going up until the right and they said absolutely not, No, that can't be the case. However, there are still shortages, there are still things that we can't get to our car makers as as quickly as they would like or or in the quantity that we were like. So that's
kind of a good sign. At the same time, they said, look, you have to understand that auto is different. There's never been an expansion in the number of chips a car that we've seen. There's never been an expansion in the technology that's going into vehicles that we're seeing right now. So that's you know, naturally kind of distorting things and meaning that that kind of demand is going to be much more persistent. Okay, so good to talk with you again,
I and thanks very much, Ian King. Bloomberg News US Semiconductor report looking at Texas instruments here