Semiconductor orders rose 15% from the first quarter

The company cited stronger sales of core chip products and educational calculators in the second quarter.

Quarterly income rose to $628m (£362m), up from $441m, with earnings at 32 cents per share in the quarter, beating predictions of 29 cents a share.

In after-hours trading in New York, shares in TI rallied 4.1%.

Increased demand for the company's analogue and digital signal processing products fuelled a 9% rise in sales in the second quarter, TI said.

Our confidence level is probably higher than it has been for quite a long time Kevin Marsh Chief financial officer

A seasonal boost in demand for educational calculators also helped boost the figures.

TI plans to raise its annual dividend payout by 20% and has authorised an additional $2bn buy-back scheme.

"Our confidence level is probably higher than it has been for quite a long time," said chief financial officer Kevin Marsh following the report.

"That gives us confidence that we should be able to deliver another strong quarter in Q3."