The company continues to prioritize designing and selling products into the industrial and automotive markets, believing they represent the best long-term growth opportunities.

Capital expenditures were $4.82 billion in 2024, slightly lower than $5.07 billion in 2023, primarily for semiconductor manufacturing equipment and facilities. The company expects capital expenditures to remain at elevated levels as part of its long-term capacity plan.

The company expects to receive between $7.5 billion to $9.5 billion through 2034 from the CHIPS Act, including direct funding and investment tax credits for U.S. manufacturing investments.

Operating expenses (R&D and SG&A) were $3.75 billion compared with $3.69 billion in the previous year, indicating continued investment in these areas.

The company returned $5.72 billion to shareholders in 2024, including $4.80 billion in dividends and $929 million in share repurchases, demonstrating a commitment to returning capital to owners.

The company's strategy includes a focus on efficiency, striving for more output for every dollar spent, and continuous improvement in all areas, contributing to revenue growth, improved margins, and disciplined expense management.

The company acknowledges that its global operations are subject to risks associated with domestic or international political, social, economic, or other conditions, including geopolitical tensions, trade barriers, and macroeconomic conditions.

The company faces substantial competition that requires it to respond rapidly to product development and pricing pressures, including competition from emerging companies in Asia and potential restrictions in the China market.

The company acknowledges that breaches, disruptions or other incidents relating to their information technology systems or the systems of their customers, suppliers and other third parties could adversely affect their operating results and reputation.

Despite consolidation, the analog and embedded processing markets remain highly fragmented, leading to significant global competition from numerous large and small companies, including both broad-based and niche suppliers.

The company believes that competitive performance in the semiconductor market depends on factors such as product line breadth, market channel strength, technological innovation, product development execution, customer service, quality, reliability, price, and manufacturing capacity.

Manufacturing process and package technologies that provide differentiated levels of performance and a structural cost advantage are competitive factors for the company's analog products.

The company has focused on creating a competitive manufacturing structural cost advantage by investing in its advanced 300mm capacity, which reduces costs compared to 200mm wafers.

Inventory was $4.53 billion, an increase of $528 million from the end of 2023. Days of inventory at the end of 2024 were 241 compared with 219 at the end of 2023.

The company invests in manufacturing technologies and does most of its manufacturing in-house, providing tangible benefits of lower manufacturing costs and greater control of its supply chain.

The company made significant investments in research and development to improve existing technology and products, develop new products to meet changing customer demands, and improve production processes.

The company acknowledges that rapid technological change in the markets it serves could contribute to shortened product life cycles and a decline in average selling prices, requiring continuous innovation.

The company owns many patents and has many patent applications pending in the United States and other countries in fields relating to its business, and has developed a strong, broad-based patent portfolio.

The largest allocation of capital is to drive organic growth, which includes investments in R&D, sales and marketing, capital expenditures and working capital for inventory.

Beyond investments in organic growth, the company also allocates capital to dividends and share repurchases, with dividends designed to appeal to a broad set of investors and share repurchases made to capture future free cash flow.

The company allocates capital to acquisitions that meet its financial and strategic objectives, indicating a disciplined approach to inorganic growth.

The company assesses and is careful to address potential health, safety and environmental risks presented by its operations, including its manufacturing operations.

The company invests to reduce emissions over the long term, including installing new factory equipment with state-of-the-art emissions reduction technology and retrofitting existing equipment.

The company is subject to complex laws, rules and regulations on an international, national and local level that affect its domestic and international operations relating to, for example, the environment and climate change; safety; health; trade; bribery and corruption; financial reporting; tax; data privacy and protection; labor and employment; competition; facilities and code compliance; market access; pandemics, epidemics or other public health crises; intellectual property ownership and infringement; and the movement of currency.

The company's customers include companies in a wide range of end markets and sectors within those markets, and if demand in one or more sectors declines or the rate of growth slows, its results of operations may be adversely affected.

The company is exposed to political, social and economic conditions, security risks, acts of war, terrorism or other hostile acts, pandemics, epidemics or other public health crises, labor conditions, climate change risks and possible disruptions in power, water supply, transportation, communications and information technology networks of the various countries in which it operates.

The cyclical nature of the semiconductor market occasionally leads to significant and rapid increases and decreases in product demand.