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National Semiconductor said today it will exit the PC processor business and lay off more than 500 people.
National Semiconductor bought Cyrix back in July of 1997 with the hopes of becoming a force in the Intel-compatible microprocessor market for personal computers.
National said it intends to exit the PC processor business "in order to sharpen the company's focus on the emerging information appliance market and on its traditional analog [chip] business."
In a related action, National said it intends to sell a majority interest in its South Portland, Maine, wafer fabrication plant.
The company also said that it will eliminate 550 positions "through early retirement, attrition, and layoffs, including 165 job cuts in Singapore announced in April. This represents less than 5 percent of worldwide employment."
"As a result of exiting the PC processor business and related support activities plus the work force reduction, but not including disposition of the fab, National expects to take a one-time charge of from $250 to $300 million in its current fiscal 1999 fourth quarter, which ends May 30, 1999," the company said.
The company is talking to "potential" partners for the South Portland manufacturing facility and the "final impact of that action on fourth quarter results depends on the outcome of those discussions."
Steve |
