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Speaker 1: We've had a real downward push on the China stocks

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Speaker 1: this week, obviously after the wrap up of the Party Congress,

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Speaker 1: and it's a little difficult to read. Some of the

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Speaker 1: futures are pointing up, but they're not active contracts. And

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Speaker 1: then we had earnings after the bell that disappointed, and

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Speaker 1: that that's what we'll be focusing on here in the

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Speaker 1: next couple of minutes. Texas Instruments, for instance, declining more

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Speaker 1: than five percent in after hours after the company gave

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Speaker 1: a disappointing quarterly forecast. Joining US now is Ian King

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Speaker 1: Bloomberg new US Semiconductor reporter. So Texas Instruments such an

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Speaker 1: important company, it's a bell weather, it's in so many

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Speaker 1: different areas. I guess this would send a a little

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Speaker 1: bit of disquiet throughout the industry here. Yeah, no, that's

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Speaker 1: absolutely right. I mean, if you're looking at what's happened

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Speaker 1: in the semi extent or in the largely been companies

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Speaker 1: that heavily depend upon PCs and computers and smartphones that

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Speaker 1: have been the ones saying, you know that demand is

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Speaker 1: really falling quickly. As you point to out, t I

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Speaker 1: is way broader than that, you know, big dependence on

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Speaker 1: Industrial and they said that, you know, orders are being

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Speaker 1: canceled and the orders are declining, and that has you know,

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Speaker 1: much broader implications. So nothing that different, Or did they

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Speaker 1: say anything different to some of the other companies that

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Speaker 1: or is it that they're going exactly thing kind of verbued? Yeah,

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Speaker 1: I mean that's a very good question, is I mean,

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Speaker 1: in typical t I fashion, they didn't give an awful

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Speaker 1: lot away and refuse a lot of direct questions, and

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Speaker 1: I you know, I spoke to the CFO afterwards and

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Speaker 1: he said, look, anybody who tells you that this is

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Speaker 1: recession fears or tells you that this is just a

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Speaker 1: steady kind of stickle of the semi conducause where we

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Speaker 1: have what are called these inventory corrections, just doesn't know

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Speaker 1: what they're talking about, because it's impossible to know. He

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Speaker 1: you know, he said, if it's just an inventory correction,

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Speaker 1: which is fairly typical, you know, every sort of six

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Speaker 1: or so quarters of upside we get a couple of

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Speaker 1: down quarters because people have ordered too much. Then that's

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Speaker 1: one set of circumstance which is frankly on the milder

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Speaker 1: end of the spectrum. If you know, you've got a

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Speaker 1: layer on this other element of people, you know, businesses

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Speaker 1: clumping down on their budgets and cutting back on capex

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Speaker 1: and investment. And that's where more studious obviously has you know,

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Speaker 1: much deeper potential harm to what's going to happen to

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Speaker 1: the industry. It seems like one of the areas that

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Speaker 1: actually had some strength was automotive. But you know, that's

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Speaker 1: a kind of an interesting situation there because you still

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Speaker 1: have demand that so much stronger than supply, and all

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Speaker 1: the while interest rates are heading up, and you would

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Speaker 1: think that at some point even the automotive industry will

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Speaker 1: take a little bit of a hit. Yeah, And that

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Speaker 1: was exactly the conversation that that you know t I

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Speaker 1: hide with analysts on the conference caller. You know, they

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Speaker 1: were asked again, how, you know, can we keep going

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Speaker 1: up until the right and they said absolutely not, No,

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Speaker 1: that can't be the case. However, there are still shortages,

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Speaker 1: there are still things that we can't get to our

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Speaker 1: car makers as as quickly as they would like or

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Speaker 1: or in the quantity that we were like. So that's

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Speaker 1: kind of a good sign. At the same time, they said, look,

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Speaker 1: you have to understand that auto is different. There's never

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Speaker 1: been an expansion in the number of chips a car

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Speaker 1: that we've seen. There's never been an expansion in the

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Speaker 1: technology that's going into vehicles that we're seeing right now.

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Speaker 1: So that's you know, naturally kind of distorting things and

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Speaker 1: meaning that that kind of demand is going to be

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Speaker 1: much more persistent. Okay, so good to talk with you again,

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Speaker 1: I and thanks very much, Ian King. Bloomberg News US

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Speaker 1: Semiconductor report looking at Texas instruments here