TI will also take a charge of about $40 million in the second quarter of 2003, associated with what the company said is the first phase of a major restructuring effort.

The restructuring will affect about 450 jobs in its semiconductor manufacturing operations in the U.S. and international locations. It will also include 800 positions within its Sensors & Controls business through voluntary retirement and involuntary termination programs over the next two years.

TI's Sensors & Controls unit is also moving certain production lines from its headquarters in Attleboro, Mass., to other TI sites in order to be geographically closer to customers and to reduce manufacturing costs, the chip maker said.

The job cuts at the Sensors & Controls unit will occur through the end of 2004, and the reduction of jobs in Semiconductor will occur through the middle of 2004.

Over this period of time, the company expects additional charges associated with these actions to total about $60 million and will distribute them over the quarters in which the jobs are eliminated. When complete, these restructuring is expected to result in about $80 million of annualized savings.

By: DocMemory
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