CLAIM #58050 · Texas Instruments Incorporated (TXN) · 2021Q4 earnings call · Jan 25, 2022 · due Dec 31, 2022
“And that will have an impact on gross margins.”
Rafael Lizardi · CFO
In context
“growth. But then beyond that 300-millimeter capacity, that continues to be a great tailwind as we have more and more of our capacity on 300-millimeter, we had -- has a structural cost advantage and we'll be continuing to add to that with our RFAB2, Lehi and the Sherman Complex. The last comment I'll make is -- and we'll give you more details on that next week on capital management, but CapEx has been going up and will continue to go up over a number of years with those investments that I mentioned. Those are long-term investments. Those are going to set us up great for the next 15-plus years. So I'm very happy about this. I'm pleased with that. We're confident about those. But that does flow through the P&L as higher depreciation. So I expect CapEx to go up, and depreciation will follow. And that will have an impact on gross margins. But frankly, at the end of the day, that's accounting. The investment is happening now. It will happen over the next few years with that additional CapEx, and that will just put us in a great position to grow the top line and have really great fall-throughs over a long tome to come. Dave Pahl: Do you have a follow-on, Ross? Ross Seymore: Yeah. I just wanted to pivot back to the revenue side. And whether it's industrial or automotive, your two focused markets, they look like they both grew kind of 30%, 35% year-over-year in 2021 as a whole. That's significantly faster than the secular growth rate that you guys have delivered, but not terribly different than the peer group for the year. So I just wondered how do you guys explain that level of growth. You don't seem to see any inventory anyw”
Verify independently
SEC filings for TXN ↗ · Claim quote is verbatim from the 2021Q4 earnings call.