The largest semiconductor exchange traded fund pared earlier steep losses on Friday but was still down over 1% in afternoon trading. National Semiconductor (NYSE: NSM) shares were steady after the company was out with quarterly results.

The chip maker’s quarterly earnings came in shy of Wall Street’s estimate while its revenue surpassed expectations.

This could be National Semiconductor’s last quarter as a stand-alone company as Texas Instruments’ (NYSE: TXN) pending $65 billion bid for the company may be completed soon. [Semiconductor ETFs Rise On M&A News]

Texas Instruments on Thursday warned its second-quarter profit and revenue might come in weaker than expected.

Semiconductor HOLDRS (AMEX: SMH) was down 1.6% on Friday. The ETF looks to be caught in a bearish pattern and has dropped sharply in recent weeks. [Texas Instruments Warns as Semiconductor ETF Sees Double Top]

Sector ETFs include Semiconductor HOLDRS, PowerShares Dynamic Semiconductors Portfolio (NYSEArca: PSI), SPDR S&P Semiconductor ETF (NYSEArca: XSD) and iShares PHLX SOX Semiconductor Sector Index Fund (NasdaqGM: SOXX).