Texas Instruments (TI) has laid off workers at its Lehi, Utah facility, just three months after receiving up to $1.61 billion in federal CHIPS Act funding for semiconductor factory construction projects.
The company confirmed the layoffs in a statement Friday, describing them as part of organizational changes to "efficiently support our long-term operational plans." While TI did not disclose the exact number of affected employees, they indicated it was less than 33% of the workforce and below the threshold requiring a WARN Act notice.
The timing raises eyebrows, as the layoffs come shortly after TI's celebration of massive federal funding and plans for expansion. In November 2023, the company broke ground on a second semiconductor plant in Lehi - a project Governor Spencer Cox called the "greatest single economic investment in Utah history."
The Dallas-based semiconductor manufacturer currently employs approximately 1,100 people at its Lehi campus, which it acquired from Micron Technology for $900 million in 2021. As part of a state tax credit agreement, TI committed to adding 800 new high-tech jobs and investing $11 billion in Utah.
Despite the current workforce reduction, TI maintains that its long-term plans for Utah remain unchanged. "Utah continues to be an important part of our manufacturing footprint and company strategy," the company stated, emphasizing their commitment to building geopolitically dependable capacity.
The reorganization comes as TI reported declining sales in late 2023 and projects another drop in early 2025. Local officials remain optimistic, with Lehi's communications manager Jeanteil Livingston noting that previously laid-off tech workers have found opportunities at other companies in the area.
The $1.61 billion federal funding package will support the construction of three state-of-the-art facilities, including two in Texas and the new Lehi plant, with funds released as project milestones are met.