Texas Instruments Cuts 400 Jobs as Company Shuts Down 150mm Fabrication Plants

Texas Instruments announced on October 7, 2025, that it will lay off 400 employees as part of a strategic restructuring that includes shuttering its aging 150mm semiconductor fabrication facilities. The workforce reduction affects manufacturing and engineering personnel across multiple locations as the Dallas-based chipmaker consolidates operations around more advanced production technologies. This decision reflects broader industry shifts toward larger wafer sizes and more efficient manufacturing processes in the competitive semiconductor market.

Context of the Decision

The Texas Instruments layoffs stem from the company's decision to close its 150mm wafer fabrication plants, which have become economically unviable compared to modern 200mm and 300mm facilities. These older fabs produce smaller quantities of chips per wafer and operate with higher per-unit costs, making them increasingly difficult to justify in today's price-competitive semiconductor environment.

The closure aligns with industry-wide consolidation efforts as semiconductor companies focus resources on advanced manufacturing nodes and larger wafer formats that deliver better economies of scale. Texas Instruments has been gradually transitioning production to its newer facilities while phasing out legacy equipment that cannot compete with current manufacturing standards.

Market conditions in the semiconductor sector have also influenced this workforce reduction. Following a period of elevated demand during the pandemic, chip companies are now adjusting capacity to match more normalized consumption patterns across automotive, industrial, and consumer electronics markets.

Impact on Operations

The layoffs primarily affect manufacturing technicians, process engineers, and facility maintenance staff at the 150mm fabrication sites. Texas Instruments operates multiple manufacturing locations, with the closures likely impacting older facilities that house the discontinued equipment.

Production from the shuttered 150mm fabs will be absorbed by the company's more efficient 200mm and 300mm facilities, which can produce the same chips at lower costs and higher volumes. This consolidation allows Texas Instruments to maintain product availability while improving overall manufacturing efficiency.

The company's research and development operations remain largely unaffected, as Texas Instruments continues investing in next-generation analog and embedded processing technologies. Customer-facing teams and sales operations also appear to be preserved as the company maintains its market position.

Company Financial Background

Texas Instruments has maintained relatively stable financial performance compared to other semiconductor companies, with annual revenues exceeding $18 billion. The company's focus on analog chips and embedded processors has provided more consistent demand patterns than companies heavily exposed to volatile memory or mobile processor markets.

Recent quarterly results showed modest revenue declines as industrial and automotive customers worked through inventory built up during supply chain disruptions. However, Texas Instruments' strong balance sheet and consistent cash generation have positioned the company to make strategic investments while managing through cyclical downturns.

The 150mm fab closures represent a continuation of the company's long-term capital allocation strategy, which emphasizes investing in manufacturing technologies that deliver the best returns while maintaining competitive cost structures.

Industry Outlook

The Texas Instruments workforce reduction reflects broader trends in the semiconductors and integrated circuits sector, where companies are optimizing manufacturing footprints after rapid expansion during the chip shortage. Similar restructuring efforts have occurred at other major semiconductor manufacturers as they balance capacity with current demand levels.

Industry consolidation around advanced manufacturing processes continues accelerating, with companies closing older facilities that cannot achieve competitive unit costs. This trend particularly affects analog chipmakers like Texas Instruments, where manufacturing efficiency directly impacts profitability in price-sensitive markets.

The semiconductor industry faces ongoing uncertainty from geopolitical tensions, trade restrictions, and shifting supply chain strategies. Companies are prioritizing operational flexibility and cost competitiveness to navigate these challenges while maintaining technological leadership.

Conclusion

The Texas Instruments layoffs mark a strategic pivot toward more efficient manufacturing operations as the company adapts to evolving market conditions. While the workforce reduction affects 400 employees, the consolidation positions Texas Instruments for improved long-term competitiveness by eliminating high-cost production capacity. The company's continued investment in advanced manufacturing technologies and strong financial position suggest this restructuring supports sustainable growth rather than indicating fundamental business challenges. Success will depend on effectively managing the transition while maintaining customer relationships and operational excellence across remaining facilities.