What Texas Instruments Incorporated told the SEC could break it.

Countries where TI operates — particularly the U.S. and China — have imposed and may impose tariffs (including product-specific), import/export restrictions, trade embargoes, sanctions and cross-border investment restrictions on the semiconductor industry, which could limit TI's operations.

“particularly the United States and China, have experienced, and other countries may experience, geopolitical tensions and administrative measures that affect global trade and macroeconomic conditions through the imposition of tariffs, including tariffs specific to the products that we sell, import or export restrictions, trade embargoes and sanctions, restrictions on cross-border investment and other trade barriers applicable to the semiconductor industry.”

TI's U.S. fab economics rely on CHIPS Act incentives — a 35% ITC (raised from 25% by OBBBA) on qualifying investments placed in service after Dec 31, 2025 and up to $1.6B direct DOC funding for its Sherman, TX and Lehi, UT 300mm fabs — with milestone-based disbursement and compliance covenants.

“we have entered into an agreement with the U.S. Department of Commerce to receive direct funding of up to $ 1.6 billion for our three large-scale 300mm wafer fabs located in Sherman, Texas, and Lehi, Utah. Direct funding of the award is based on the achievement of certain milestones.”

About 60% of TI's revenue comes from customers headquartered outside the U.S.; revenue from China-headquartered end customers was ~20% of 2025 revenue while products shipped into China represented ~50% of revenue — heavy China and international exposure.

“About 60% of our revenue comes from customers with headquarter locations outside the United States. Revenue from end customers headquartered in China represented about 20% of our revenue in 2025, while revenue from products shipped into China represented about 50% of our revenue in 2025.”

Although TI does most manufacturing in-house, it subcontracts a portion of wafer fabrication and assembly/testing and depends on third parties (including for advanced logic process technology development and facility construction), and does not have long-term contracts with all of them.

“We subcontract a portion of our wafer fabrication and assembly and testing of our products, and we depend on third parties (including contractors and other service providers) to support key portions of our operations (including manufacturing operations and advanced logic manufacturing process technology development) and to construct our facilities. We do not have long-term contracts with all of t”