Texas Instruments Plans to Shutter Factories in Houston and Japan
"Revenue in the fourth quarter was higher than expected across all our major product lines, reinforcing our belief that we're at the bottom of this downturn. I'm pleased to say that despite the downturn and the lower factory utilization that came with it, cash flow from operations was strong and well above levels as compared with similar points in prior downturns. Our strategic focus on our core businesses and efficient investment in capacity are key to our strong generation of cash," said Rich Templeton, chairman, president and chief executive officer. "As we move into 2012, we enter the final phase of our planned exit from the baseband market, and thus further tighten our focus on Analog, Embedded Processing and Wireless."
To keep the good times rolling, TI announced plans to close two of its older semiconductor manufacturing facilities, one of which is located in Hiji, Japan, and the other in Houston, Texas. Each factory employs around 500 workers and combined they accounted for about 4 percent of TI's revenue in 2011.
"These sites have made strong, high-quality contributions over the 30-plus years each has operated," said Templeton. "They demonstrate the tremendous cash flow potential associated with analog products, where factory lives are literally measured in decades. However, we're now at the point where each of these sites requires significant upgrades, and it makes financial sense to shift production to larger, more advanced facilities."
TI's future looks bright as the market for mobile devices continues to expand. Revenue from TI's OMAP applications processors doubled year-over-year and is the primary reason why TI's wireless revenue increased in the fourth quarter.
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Via: Texas Instruments | News Archive
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manufacturing,
Technology,
Texas Instruments,
plants,
semiconductors
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Hmmm closing a factory in your hometown might not still will. I hope they find those workers new jobs, or at least give them a severance package. |
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Gosh, I really hate it that more Americans are losing their jobs. I read somewhere that Texas has a better job outlook than most of the other states, so hopefully those people will find a decent new job quickly. |
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I think it really depends on the position and type of work someone does, too. I have met a lot of people in construction and similar jobs that have negative outlooks. I have also met people in medical and high tech professions who have no problem getting hired or even switching jobs. |
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Diversify diversify jobs are really bleak in many fields but people I know who went into field where degree was applicable at several jobs were way better off. I personally have worked in construction and our small company stayed afloat by being able to do anything. Instead of hiring 5 generals to redo a bathroom they can hire one. Also makes it so if we cant find finish we find flooring if we cant find that then framing ect. Texas instruments is doing that and getting back onto feet but smart phones ect have killed market I know for harder geometry calculations for fiquring roof spans ect. I swore by texas instruments but now my phone has all but one or two of the functions that were not that important. |
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It used to be when times were good, they rewarded their workers with bonuses, rasied their pay, hired more workers and expanded business, now when companies prosper they cut pay, close factories, hoard the extra money and then give their exec's huge bonuses and pay increases, what a sad world we live in now :( |
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where are those new semiconductor manufacturing facilities going to be constructed? those workers can go to the new one? i don't think they necessarily need to be laid off. |
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