Texas Instruments (TI) is laying off workers in Utah despite recently receiving $1.6 billion in federal funding meant to help with the construction of three new semiconductor plants currently under construction in Texas and Utah.
According to the Salt Lake Tribune, Texas Instruments laid off workers at its existing Lehi facility, which it acquired from Micron Technology in 2021. The company said the cuts are part of efficiently supporting its long-term operational plans.
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TI did not specify how many workers were impacted by the cuts. But it did say it was well less than the 33% of the workforce criteria for a WARN Act notice. As the report points out, the Lehi facility employs 1,100 people.
In December, TI announced the CHIPS Act funding agreement, including a 25% investment tax credit.
"As the largest analog and embedded processing semiconductor manufacturer in the U.S., TI is uniquely positioned to provide dependable, low-cost 300mm semiconductor manufacturing capacity at scale," said TI CEO Haviv Ilan in a statement. "The increasing number of electronic devices in our lives depend on our foundational chips, and we appreciate the support from the U.S. government to make the semiconductor ecosystem stronger and more resilient."
The funding is intended to support the company’s investments through 2029 for three large-scale 300mm wafer fabs in Sherman, Texas (SM1 and SM2), and Lehi, Utah (LFAB2), which broke ground in 2023.
The cuts come after TI experienced a sales decline in the fourth quarter of 2024 and anticipated further declines in the first quarter of 2025. But despite sliding sales and job cuts, the company said it hasn’t changed its plans to build the new plant in Utah.
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