Shares of Texas Instruments (NASDAQ: TXN), a producer of analog and embedded chips, rallied as much as 4.1% on Wednesday before retreating to a mere 3% gain as of 12:18 p.m. ET. Still, that was a much more substantial gain than the general semiconductor sector, with the iShares Semiconductor ETF (NASDAQ: SOXX) only up about 0.7% at that time.

Texas Instruments gave a midyear update on its long-term spending plans on Tuesday, which is something the company usually does only once a year. But the analog chip industry is currently in one of the worst downturns in its history, and the company acknowledged that, by lowering the bottom end of the range for its long-term spending plan first introduced in 2022.

After the supply chain shortages of 2021, Texas Instruments embarked on a long-term spending plan that would elevate its capital expenditures over four years to around $5 billion per year, from 2023 through 2026. The idea was to invest in U.S.-based capacity for crucial semiconductors that go into a wide range of industrial and automotive applications, all while lowering its cost per chip.

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Source Fool.com