Texas Instruments, one of the world’s largest chipmakers, suffered its first sales decline since 2020, amid a semiconductor industry slump.

In its fourth-quarter earnings 2022 report, revenue declined 3.4% to US$4.67 billion (S$6.2 billion), breaking a run of double-digit percentage increases stretching back to 2020. Analysts had projected US$4.61 billion.

In its outlook for the first quarter of 2023, the chipmaker gave a tepid forecast. It expects revenue to be between US$4.17 billion to US$4.53 billion; an average of analysts’ estimates was US$4.41 billion. Profit will be US$1.64 to US$1.90 a share, against analysts’ US$1.86 forecast.

Although the company did not make any predictions on when orders and revenue might rebound, the outlook suggests that Texas Instruments may not bounce back quickly from its sales slowdown.

Chip makers that cater to the computer and smartphone industries have felt the sharpest drop in sales. Companies such as Intel Corp and Nvidia Corp have also recently reported sharp drops in revenue as their customers cut purchases in an effort to burn through unused stockpiles.