Competition knocks chipmaker TI

TI is a top supplier of microchips for mobile phones

Shares in Texas Instruments (TI), the world's largest maker of chips used in mobile phones, have fallen following disappointment over revenue forecasts.

Despite seeing an 11% rise in quarterly profits, TI's shares fell 2.8% in after-hours trade on news that future revenues would be lower than expected.

The US firm has seen higher competition from Swiss rival STMicroelectronics.

TI expects revenues below $3.68bn (£1.81bn) for October to December, less than Wall Street's $3.7bn target.

Rising profit

Telecoms firm Ericsson is one of TI's biggest customers, but the Swedish group is now buying more chips from STMicroelectronics.

Analysts say TI is also set to start losing some business from Finnish mobile phone-maker Nokia, which is also due to start buying more products from STMicroelectronics.

TI's third-quarter profit for the three months to 30 September rose to $776m, from $702m a year earlier.

Its third-quarter revenues fell to $3.66bn from $3.76bn for the same time last year, when sales were boosted by one-off factors.