LA Semiconductor Begins Layoffs Affecting 342 Workers at Pocatello, Idaho Facility
POCATELLO, Idaho — LA Semiconductor LLC has begun laying off workers at its Pocatello facility, with the first wave of terminations taking effect April 10 and a second round scheduled for May 1. In total, 342 employees will be let go over the coming weeks, marking a significant blow to the local economy as the company navigates ongoing financial and legal troubles.
The layoffs follow years of documented financial difficulties for the company, which fell behind on major equipment lease payments as far back as 2024. Global chipmaker ON Semiconductor (Onsemi) and other semiconductor component agencies filed a lawsuit alleging breach of contract. A court placed LA Semiconductor into receivership in December 2024, with court records indicating Onsemi has since provided funding to keep the Pocatello facility operational. The company is currently seeking a buyer while continuing to manage through the receivership process.
WARN Notices Filed, Workers Beginning to Feel Impact
Under federal law, companies are required to provide employees with a Worker Adjustment and Retraining Notice (WARN) — a mandatory 60-day notification prior to termination. State of Idaho WARN records show LA Semiconductor filed those notices on February 9 of this year, with the first effective release date set for April 10.
The 342 affected workers at LA Semiconductor surpass the number of employees recently laid off at Intermountain Packing in Idaho Falls, where 150 workers lost their jobs on April 3. Together, the two layoff events underscore growing workforce concerns across Southeast Idaho and the broader state economy.
Brandon Duong, an economist with the Pocatello office of the Idaho Department of Labor, acknowledged that the full economic impact of the LA Semiconductor layoffs remains unclear at this stage. “They had their planned layoffs, they were sending out their WARN notice,” Duong said. “That’s something that we publish publicly 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.”
Pocatello Mayor Remains Cautiously Optimistic, City Working on Incentives
Pocatello Mayor Mark Dahlquist addressed the situation publicly, offering measured optimism while emphasizing that the city’s economic fundamentals remain sound. “I continue to remain cautiously optimistic that a buyer will eventually be secured,” Dahlquist said. “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 outlined steps the city is taking to help facilitate a sale and protect jobs. “We’ve been actively working through the Idaho Department of Commerce on the seller’s behalf to explore potential tax incentives,” Dahlquist said. “We still believe in the long-term viability of this facility. The city of Pocatello stands by to assist in any way.”
The use of targeted tax incentives to attract or retain employers reflects a market-friendly approach to economic development — one that encourages private investment without expanding government bureaucracy.
Idaho’s Semiconductor Sector a Key Economic Driver
The stakes extend well beyond Pocatello. The semiconductor industry supports more than 12,000 jobs statewide, with Idaho ranking among the top ten states in the nation for semiconductor workforce. According to Idaho Commerce, the state’s semiconductor industry — including LA Semiconductor — accounts for approximately 4 percent of national semiconductor employment, a substantial share for a state of Idaho’s size.
That economic weight makes the future of the Pocatello facility a matter of statewide concern. If a buyer can be secured and operations stabilized, the 342 positions lost could potentially be restored. If not, the ripple effects through Bannock County’s economy could be felt for years.
LA Semiconductor has not yet responded to requests for comment. Local workers affected by the layoffs have also been contacted and had not responded as of publication.
What Comes Next
The immediate focus remains on finding a qualified buyer for the Pocatello facility before further job losses occur. City officials are continuing to coordinate with the Idaho Department of Commerce on potential tax incentives to sweeten any deal. The second wave of layoffs is set for May 1, with 342 total workers ultimately impacted unless a sale or operational turnaround occurs first. The Idaho Department of Labor will track the economic fallout through quarterly and annual workforce data. Bannock County News will continue to follow this developing story as new information becomes available.