Texas Instrumentsreason 01 of 4it makes it for less than anyone else canderived 2026-08-21accession 0000097476-26-000152
TI states that 300mm wafer production 'costs about 40% less than a chip built on a 200mm wafer'
The filing describes 'creating a competitive structural cost advantage by investing in our 300mm wafer production'
Gross profit margin increased to 61.4% from 57.9% in Q2 and to 59.8% from 57.4% for the first half, 'primarily due to higher revenue, partially offset by higher manufacturing costs associated with our planned capacity expansions'
The filing states this approach 'supports free cash flow per share growth across a range of market conditions'
the finding
Language shifted from future tense ('will uniquely position') to present perfect ('have uniquely positioned'), indicating the 300mm capacity investment phase is now described as complete rather than upcoming.
before · MD&A · 2026-03-31 → 2026-06-30
“nearing the end of a six-year elevated capital expenditures cycle that, when completed, will uniquely position TI”
→ after
“These investments have uniquely positioned TI to deliver dependable, low-cost 300mm capacity”
the evidence · every sentence checkedeight sentences · whole, uncut
the claims it rests on
“TI states that 300mm wafer production 'costs about 40% less than a chip built on a 200mm wafer'”
“The filing describes 'creating a competitive structural cost advantage by investing in our 300mm wafer production'”
“Gross profit margin increased to 61.4% from 57.9% in Q2 and to 59.8% from 57.4% for the first half, 'primarily due to higher revenue, partially offset by higher manufacturing costs associated with our planned capacity expansions'”
“The filing states this approach 'supports free cash flow per share growth across a range of market conditions'”
what it was checked against
300mm cost advantage claim
“We have focused on creating a competitive structural cost advantage by investing in our 300mm wafer production, which describes the diameter of the wafer on which our chips are produced, and costs about 40% less than a chip built on a 200mm wafer.”
Q2 gross margin improvement
“Gross profit of $3.35 billion was up $777 million, or 30%, primarily due to higher revenue, partially offset by higher manufacturing costs associated with our planned capacity expansions. As a percentage of revenue, gross profit increased to 61.4% from 57.9%.”
first-half gross margin improvement
“Gross profit of $6.15 billion was up $1.26 billion, or 26%, primarily due to higher revenue, partially offset by higher manufacturing costs associated with our planned capacity expansions. As a percentage of revenue, gross profit increased to 59.8% from 57.4%.”
FCF-per-share durability claim
“We believe this approach supports free cash flow per share growth across a range of market conditions.”