"I seriously doubt that TI is building inventory. Their management vehemently opposes that on the balance sheets!"
Well the did for certain products. Check out:
"TI IMPROVES LOGIC AVAILABILITY BY 4X
"New Strategy Puts Logic Within Easy Reach
"DALLAS (April 4, 2002) -- Texas Instruments (TI) (NYSE: TXN) announced today that it is improving availability for logic devices. As of April 1, 2002, availability on high-running logic devices has been improved to two weeks from the industry-practiced eight weeks. TI made significant investments in inventory in order to offer improved availability, irrespective of current market conditions. See www.ti.com/sc/logic.
"We know our customers care about availability, and we are doing something about it," stated Steve Hanke, worldwide director of marketing for TI's Standard Linear and Logic Group.
The targeted devices available for this new strategy make up 80 percent of TI's logic unit volume, including Little Logic devices, and functions in LVC, HC, CD4K, AHC, LVT, and ABT technologies.
"This move insures customers that logic is within easy reach," Hanke said. "If a customer needs logic devices inside of two weeks, we want them to give Texas Instruments a call. We want them to know that while we still would like as much visibility as possible into future demands, we stand ready to support very near term flexibility and are making the investment to do so."
Ti, just advertised 3 weeks ago a new tactic to ship customer needs within 2 weeks,
fairchild said they would ship world wide within 3 days, a front end and backend cycle is about 60 days--go figure -its been posted on this board several times that this is a big change in the past thinking of ti.
Ok, so you're saying the total value of TXN stock is greater than one year's output of wealth from each of at least half the countries in the world. Seems like an apples to oranges comparison, but I wouldn't be surprised if you're right.
wasn't that the same strategy Junkins had during the period when TI had 12 consect qrts of negative earnings and they were building facilities all over the world ?,,to be ready for the upturn ?
It's difficult to compare utilization without also considering capacity. One small fab at 90% utilization cannot compare to 6 big fab's at 50% utilization.
I'll bet TI can upside a heckuva lot more wafers than TSMC.
I still don't understand this leaps and bounds prediction. Why won't a rising tide lift all boats? What is it about an upturn that will cause TXN to leap ahead of competition that won't help the competition, too?
bobfai explains it by saying that TXN is not leaps and bounds ahead of the competition in the downturn because they have their money tied up in excess capacity, just waiting for the next upswing (bobfai, sorry if I am misunderstanding your explanation).
But you say that TXN's fab utilization is above TSMC. So, TSMC has more excess capacity to leap ahead than TXN does. There's one data point that doesn't fit with bobfai's theory. Is it an anomoly or is bobfai's explanation faulty?
>>"I just hate to see someone post complete fabrications like TI has a market cap larger than most countries without being challenged."
So challenge him. Dig up the market cap on some small countries (whatever that even means) and prove him wrong. That would be interesting. Just saying he's a liar is boring.