First Wave of Layoffs Ensue at LA Semiconductor Facility in Pocatello
POCATELLO, Idaho (KIFI) – After years of financial and legal issues, LA Semiconductor LLC is letting go a total of 342 employees over the next several weeks. The first wave of layoffs occured April 10 with the second set for May 1.
The semiconductor industry is responsible for over 12,000 jobs statewide, with Idaho ranking among the top ten states for semiconductor workforce. The company's financial trouble has been documented since 2024, when they fell behind in major equipment lease payments. Semiconductor components agencies, including global chipmaker Onsemi, filed a lawsuit on this alleged breach of contract. The company was placed into a recievership in December 2024.
Court records show Onsemi has provided funding to keep the facility running. The company is still looking for a buyer amidst these substantial layoffs.
Pocatello Mayor Mark Dahlquist commented on the situation, stating "I continue to remain cautiously optimistic that a buyer will eventually be secured. The situation is the result of a contract dispute between two semiconductor companies, not a reflection of the city or our efforts."
The mayor also explained the city has been actively working to resolve many consequential issues. "We've been actively working through the Idaho Department of Commerce on the seller's behalf to explore potential tax incentives," he said. "We still believe in the long-term viability of this facility. The city of Pocatello stands by to assist in any way."
According to Idaho Commerce, Idaho's semiconductor industry, including LA Semiconductor LLC, accounts for 4 percent of the national industry employment. Local News 8 spoke with Brandon Duong, an economist at the Pocatello Idaho Department of Labor, who told us they know very little about the effect of the layoffs at this time.
"They had their planned layoffs, they were sending out their WARN notice," Duong said. "That's something that we publish publically on our website. As far as local impact goes, if the layoffs continue, we'll just see how it pans out in our quarterly and annual data."
WARN stands for Worker Adjustment and Retraining Notice, a mandatory 60-day notification of termination for employees. The State of Idaho WARN Notices show LA Semiconductor LLC sent notices to their employees on February 9 of this year, with the first effective release date set for April 10.
The 342 employees affected tops the number of laid-off workers at Intermountain Packing, a company in Idaho Falls who let go 150 employees on April 3 of this year.
Local News 8 has reached out to employees affected by the layoffs and await comment. We have also contacted LA Semiconductor LLC for direct comment and await their response. This is a developing story and we will continue updating our audience as more information becomes available.
