Microsoft, Chipmakers’ Bottom Lines Hit by Xi’s Lockdowns
- Microsoft, TI cite a financial hit from country’s Covid policy
- Chipmakers say lockdowns disrupt customers’ production, demand
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Companies from Microsoft Corp. to Texas Instruments Inc. that long benefited from supply chains that run through China are now paying a price for the country’s sweeping lockdowns that have confined millions to their homes.
Texas Instruments, which supplies semiconductors to automakers and tech companies, cut its revenue forecast Tuesday by about 10% because customers shuttered plants and reduced operating levels in China. The same day, Microsoft said the current lockdowns have affected its performance and extended shutdowns would hurt its ability to produce Xbox game consoles and Surface laptops.