Tuesday, March 15, 2011

Texas Instruments (TXN) Sees Lost Revenue from Earthquake

Shares of Texas Instruments (NYSE:TXN) are down today as the company expects to lose revenue in the first half of its fiscal year because of the damage to its Miho, Japan, manufacturing plant from the earthquake.

Intel (NASDAQ:INTC) and AMD (NYSE:AMD) were also under pressure on supply concerns today as well.

JPMorgan (NYSE:JPM) chip analysts Chris Danely noted:

"We expect many semiconductor companies in our coverage universe to also be negatively impacted from both a demand as well as a manufacturing perspective. We believe ON, Maxim, Xilinx, and TI all rely on Japan for some part of manufacturing … from demand and shipment disruptions as well. We also expect a negative impact from demand and potentially shipment disruptions in Japan, which is one of the largest consumers of electronics. Companies in our universe with high exposure to Japan include [Altera] (18% of sales from Japan), [ON Semiconductor] (16%), [Analog Devices] (14%), and [Linear Technology] (14%)."

Texas Instruments was trading at $33.74, down $0.82, or 2.37 percent, as of 12:56 PM EDT.

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