Oct 22 (Reuters) - Texas Instruments ( TXN ) forecast

fourth-quarter revenue and profit below estimates on Tuesday as

the chipmaker navigates a buildup of inventory in some segments

such as industrial, even as it indicated improving demand from

China's automotive market.

The company forecast revenue in the range of $3.70 billion

to $4.0 billion, compared with analysts' average estimate of

$4.07 billion, according to data compiled by LSEG.

TI's "results and outlook are consistent with the current

market trends of mixed PC and smartphone end-markets and soft

industrial and automotive demand," said Summit Insights analyst

Kinngai Chan.

The analog chipmaker also forecast fourth-quarter earnings

between $1.07 and $1.29 per share, compared with analysts'

estimate of $1.36.

An ongoing weakness in the industrial market, which utilizes

chips for tasks such as automating factories, has hurt Texas

Instruments ( TXN ) and peers as customers struggle to clear existing

inventory stemming from stock-piling during the pandemic.

The results are closely watched as an indicator of demand

across a slew of sectors since the company's chips find

widespread application. It is also the first among major U.S.

chipmakers to report results for the September quarter.

Meanwhile, revenue from the automotive market rose "upper

single digits" sequentially, CEO Haviv Ilan said on a

post-earnings call with analysts, attributing the uptick to

growth in the China market.

"There is momentum for EVs in China, our content is growing

there, and that's what really drove the growth in the third

quarter," Ilan said. Weakness is expected to persist in the

remainder of the automotive market, he said.

Shares of the company rose 1.2% in extended trading,

following a rise of about 14% so far this year.

Third-quarter revenue dropped 8% to $4.15 billion, but was

the smallest decline in seven quarters.

The company beat profit expectations for the three months

ended September, recording earnings of $1.47 per share, above

estimates of $1.37 according to estimates compiled by LSEG.

Texas Instruments ( TXN ) has been working to produce more chips on

its cost-effective 300mm manufacturing technology, which the

chipmaker had indicated would help bolster profits.