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Texas Instruments, famous for its scientific calculators globally, is shutting down semiconductor manufacturing plants in Houston and Japan to cut costs, thus eliminating over 500 jobs.
Chipmaker Texas Instruments posted a 68 per cent drop in quarterly profits as the semiconductor industry continues to suffer in the economic downturn.
The company released its fourth quarter 2011 financials yesterday with $3.42 billion revenue, down three per cent from a year ago.
While the revenue was fairly steady, the firm’s profits fell off a cliff with the company making $292 million, a 68 per cent decline from the same period in 2010.
The Houston plant office, which is in the city of Stafford near here, will be a huge blow to the community. The 45-year-old Stafford plant has 1,000 employees, 500 of whom will be relocated to another facility.
The company also said it would close a similar plant in Japan. The company said the cutbacks will save Texas Instruments about $100 million annually.
The Dallas-based company is the third largest manufacturer of semiconductors worldwide after Intel and Samsung, the second largest supplier of chips for cellular handsets.
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