Texas Instruments announced Wednesday that it would close two chip plants in North Texas over the next three to five years, reported Dallas News.
Texas Instruments’ Public Relations manager Nicole Bernard said a factory in Dallas at its north campus would be shuttered, along with a chip facility in Sherman.
Bernard said both sites would be wound down no earlier than 2023 and no later than 2025.
“Employees at these factories have been an important part of TI’s overall success and will continue to be critical to help to ensure a successful transition,” Bernard said. “As we get closer to the end of the transition, we expect to offer many (of the) employees jobs in our other Dallas-area manufacturing sites. For individuals without roles at that time, we will offer severance packages and other transition assistance.”
Plans to close both chip plants reflect a shift in the way the company produces chips for a range of devices, from smartphones to automotive to industrial machinery.
The company is concentrating on making 300-millimeter wafers, rather than 150-millimeter wafer production seen at Dallas and Sherman plants.
The announcement was made during earnings call on Wednesday when the company reported revenue of $3.35 billion in the fourth quarter, a decline of 10%. However, a slight improvement from an 11% drop in the third quarter.
The company has been grappling with crosscurrents in the global economy that have slowed the overall industry since 2018, CEO Rich Templeton said, “most markets weakened further.”
“Most markets showed signs of stabilizing,” Templeton said in the prepared statement.
While semiconductor markets have stabilized, we noted that hedge funds have already bet big on chipmakers and hardware firms, pricing in one of the most robust recoveries in years, despite a slowing economy.