Texas Instruments (TI) has laid off employees at its Lehi, Utah, semiconductor plant, the company confirmed on March 28. The layoffs come shortly after TI received $1.61 billion in funding from the U.S. CHIPS and Science Act to support the expansion of its U.S. manufacturing capacity, raising questions about the company's strategic direction.

In an emailed statement, TI said the layoffs are part of organizational changes aimed at ensuring the company can "efficiently support long-term operational plans." While TI did not disclose the exact number of employees affected, it confirmed that the layoffs did not reach the threshold requiring a formal notice under the Worker Adjustment and Retraining Notification (WARN) Act, which applies to mass layoffs of 500 or more employees. Reports from employee forums suggest that about 30% of Lehi staff were impacted, including roles in process engineering and equipment technology.

The job cuts follow a challenging financial period for TI. In Q4 2024, the company reported a 2% year-over-year decline in revenue and a 12% drop in net profit. TI's full-year revenue and profit also fell for the second consecutive year, and the company has projected further sales declines for early 2025.

Despite the layoffs, TI reaffirmed its commitment to Utah, stating that Lehi remains a key part of its global manufacturing network. The company is continuing construction on its second 300mm wafer fabrication plant in Lehi, known as LFAB2, which is expected to create 800 new jobs.

"Utah continues to be an important part of our manufacturing footprint and company strategy as we build geopolitically dependable capacity to meet customer needs for decades to come," TI stated.