Texas Instruments (TI) has started a new round of layoffs in China, focusing on core technical support roles like Field Application Engineering (FAE). This is the company’s third round of cutbacks in the country in three years.
The downsizing reflects TI’s significant performance challenges: 2024 revenue dropped 10.7%, with net profit down 26%. Weakness in its key industrial and automotive segments—which contribute 70% of revenue—along with high inventory levels have intensified pressure. Q1 2025 revenue is projected to fall another 2%, with automotive growth stagnant and industrial demand still 40% below previous peaks.
TI’s retreat follows earlier moves: shifting MCU R&D to India in 2022, dissolving a low-end power chip team in Beijing in 2024, and now reducing FAE roles—eroding its technical service presence in China.
In response, TI has turned to price competition, launching budget MCUs like the F28E12x series to retain share in appliances and power tools. Yet this appears defensive as local firms advance through faster response and technical upgrades. Notably, while TI uses $1.61 billion in U.S. subsidies to expand a Utah fab, China’s semiconductor equipment localization is rising, with players like SMIC expanding capacity.
ICgoodFind : TI’s withdrawal opens space for local suppliers, fueling fiercer competition for market share amid the sector’s slowdown.
