The SOX gained 2.2% yesterday after TI’s optimism about Q3 gave the market reassurance.

TI’s own shares went up 8%.

Although TI’s Q2 revenues were down y-o-y at $3.67 billion, the company forecast Q3 revenues of $3.65 billion to $3.95 billion.

Asked about China sales, CEO Rich Templeton replied there was “nothing unusual” about them.

“Our cash flow from operations of $7.2 billion for the trailing 12 months again underscored the strength of our business model,” said Templeton, “free cash flow for the trailing 12 months was $5.9 billion and 39% of revenue. This reflects the quality of our product portfolio, as well as the efficiency of our manufacturing strategy, including the benefit of 300-millimeter analogue production.”