Recently, the US semiconductor giant Texas Instruments (TI) laid off its chip design team in Beijing. The team was mainly responsible for the research and development of relatively low-end power chips, with about 50 people.
According to the latest news, it is said that the company's office in Shenzhen will also undergo drastic personnel changes, including marketing, AE, design and other line-related positions, which will be eliminated, with about 20 people.
Regarding the reason for the adjustment, the above-mentioned insider said that it was a global department adjustment, which eliminated the product line in China and transferred it to India, and this product line is a still profitable department.
It is reported that this is not the first time that TI has made adjustments in this regard. In November last year, TI dismissed its China MCU team. The team's markets and applications were left behind, RD was abandoned, and all the original MCU product lines were moved to India. All members of the team were dispersed to other product lines.
Industry insiders believe that the layoffs may be affected by sluggish demand in the entire consumer market on the one hand, and also by factors such as the involution of power chips and relationships.
Last month, TI announced its fourth-quarter financial report for 2023, in which revenue was US$4.08 billion, down 10% from the previous quarter and 13% year-on-year; net profit was US$1.37 billion (earnings per share of US$1.49), down 30% year-on-year.
From a business perspective, the analog business revenue was US$3.12 billion, down 12% year-on-year, but higher than the expected US$3.07 billion; the embedded processing business revenue was US$752 million, down 10% year-on-year, well below the expected US$828.6 million .
As an analog chip giant, TI's performance guidance for the first quarter of fiscal 2024 ($3.45-3.75 billion) is also significantly lower than market expectations (average $4.09 billion).