May 28 (Reuters) - Activist investor Elliott Investment

Management disclosed a $2.5 billion stake in analog chipmaker

Texas Instruments ( TXN ) and urged the chipmaker to improve its

free cash flow.

Texas Instrument's shares rose about 3% in early trading.

Elliott proposed in a letter to the company's board that

Texas Instruments ( TXN ) introduce a "dynamic capacity-management

strategy", which would allow it to achieve free cash flow of as

much as $9 a share by 2026.

The company's free cash flow fell 77% to $1.47 per share in

2023, according to LSEG data.