Analog Devices predicts higher sales as it adds chipmaking capability – India Times English News

Analog Devices Inc. on Tuesday projected fiscal first-quarter sales above Wall Street estimates as it said hundreds of millions of dollars in investments would boost its chipmaking capability.

Wilmington, Massachusetts-based ADI makes chips that go into industrial robots, 5G telecommunications equipment and increasingly automobiles. According to Refinitiv’s IBES data, the company said it expects fiscal first-quarter sales and adjusted profit at the midpoints of $2.6 billion and $1.78 per share, above analyst estimates of $2.49 billion and $1.70 per share.

ADI, which sources chips from both external factories and a network of locations, delayed the closure of its California chip factory earlier this year to help meet customer demand during the global chip crisis. It said on Tuesday that it had spent $340 million in fiscal 2021 to expand internal production capacity.

Much of this will be at a factory in Beaverton, Oregon, which ADI acquired in a $21 billion purchase of Maxim Integrated.

“We are now making a serious downpayment to build that capacity into an existing facility in the western US,” Chief Executive Officer Vincent Roche told Reuters in an interview. “So it’s really taking an existing footprint, growing it, and just bringing in more of that significant … potential for ADI.”

For the fiscal fourth quarter ended October 30, ADI reported sales of $2.34 billion and adjusted earnings of $1.73 per share, which exceeded analysts’ expectations of $2.31 billion and $1.70 per share.

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