diff --git a/compiler/plugins/target/AMD-AIE/iree-amd-aie/Transforms/Passes.cpp b/compiler/plugins/target/AMD-AIE/iree-amd-aie/Transforms/Passes.cpp
index 858b1a459..5e4ea1d3e 100644
--- a/compiler/plugins/target/AMD-AIE/iree-amd-aie/Transforms/Passes.cpp
+++ b/compiler/plugins/target/AMD-AIE/iree-amd-aie/Transforms/Passes.cpp
@@ -746,15 +746,6 @@ void addMLIRAIRLoweringPasses(OpPassManager &passManager, AMDAIEDevice device,
   passManager.addPass(xilinx::air::createAIRIsolateAsyncDmaLoopNests());
   passManager.addPass(createCanonicalizerPass());
   passManager.addPass(createCSEPass());
-  {
-    xilinx::air::AIRFuseChannelsOptions options;
-    if (useTilePipeline == TilePassPipeline::PackPeelPipeline &&
-        matmulElementwiseFusion) {
-      const static llvm::SmallVector<std::string> mode = {"L1"};
-      options.clAggressiveMode = mode;
-    }
-    passManager.addPass(xilinx::air::createAIRFuseChannels(options));
-  }
   passManager.addPass(createCanonicalizerPass());
   passManager.addPass(createCSEPass());
   passManager.addNestedPass<func::FuncOp>(
@@ -818,12 +809,10 @@ void addMLIRAIRLoweringPasses(OpPassManager &passManager, AMDAIEDevice device,
     // with given factors, and subsequently unrolled in
     // AIRUnrollOuterPerfectlyNestedLoopsPass, to enforce SHIM DMA BD count
     // within the hardware limit.
-    if (useTilePipeline == TilePassPipeline::PackPeelPipeline &&
-        matmulElementwiseFusion) {
+    if (useTilePipeline == TilePassPipeline::PackPeelPipeline) {
       const static llvm::SmallVector<unsigned> tile_sizes = {2, 2};
       options.clTileSizes = tile_sizes;
-    } else if (useTilePipeline == TilePassPipeline::PadPackPipeline ||
-               useTilePipeline == TilePassPipeline::PackPeelPipeline) {
+    } else if (useTilePipeline == TilePassPipeline::PadPackPipeline) {
       const static llvm::SmallVector<unsigned> tile_sizes = {4, 4};
       options.clTileSizes = tile_sizes;
     }