Google's Motorola Mobility unit will shut down its factory in Texas after about a year, due to the high cost of making smartphones in the U.S.
The handset unit, which Lenovo agreed to buy for $2.91 billion earlier this year, will shutter the plant in Fort Worth by the end of the year, the company said on Friday.
Motorola did not manage to convince buyers for its high-end Moto X smartphone, which hampered Motorola's ability to reach economies of scale, the company said. Since then, Motorola has released lower-cost handsets that target consumers in emerging markets.
Apple has also started some assembly and component work in Texas and Arizona.