Core Viewpoint - The recent layoffs at Texas Instruments (TI) are part of a broader strategy of global contraction and business adjustment, reflecting the company's response to performance pressures and cyclical changes in the semiconductor industry [1][2]. Group 1: Layoffs and Business Adjustments - TI has laid off approximately 50 employees from its low-end power chip R&D team in Beijing as part of its 2024 strategy [1]. - The company's MCU R&D team in China underwent significant restructuring between 2022 and 2023, with core functions relocated to India, retaining only market and application support teams [1]. - The recent layoffs in FAEE positions, which directly connect customer technical needs, raise concerns about TI's local technical service capabilities [1]. Group 2: Financial Performance and Market Conditions - TI's financial data indicates a projected 11% year-over-year decline in revenue for 2024, with net profit expected to shrink by 26% [1]. - The industrial and automotive markets, which account for 70% of TI's revenue, are experiencing weak demand, leading to underutilization of capacity and inventory buildup [1]. - The first quarter of 2025 is expected to see a further revenue decline of about 2%, with earnings per share projected to drop by 11% to 28% [1]. Group 3: Global Capacity and Competitive Landscape - TI's global capacity adjustments, including the construction of a new wafer fab in Utah supported by $1.61 billion from the U.S. CHIPS Act, are impacting local teams [2]. - The layoffs in China may be linked to TI's long-term strategy of focusing on high-margin product lines and optimizing global resource allocation [2]. - The rapid rise of domestic chip companies in the analog and embedded sectors is intensifying competition for TI, necessitating adjustments in lower-end product lines [2]. Group 4: Industry Trends - The semiconductor industry is currently undergoing a cyclical adjustment, with competitors like NXP and ON Semiconductor also initiating layoffs or cost-cutting measures [2]. - Analysts suggest that if demand in the industrial and automotive sectors does not recover by the second half of 2025, further industry-wide personnel optimization may continue [2].