[skybrian]

I don't know anything about the semiconductor industry, but it's not hard to come up with a plausible argument for this:

It makes sense to cut back on investment if they think there will be an oversupply of chips. In which case, returning the money to shareholders doesn't seem wrong, if they don't have a good way to invest it?

It doesn't show much confidence in their ability to succeed and regain market share, though.