Texas Instruments to close plants in Texas and Japan

Texas Instruments announced recently that, even though it reported better than expected chip sales during the fourth quarter of 2011, the company will shut down its plants in Texas and in Japan. Texas Instruments has seen an increased demand for its mobile chips but will close the two factories during the next 18 months while increasing its employee numbers at different plants. The move is an effort to cut costs, Reuters said. The company reported a fourth-quarter profit of $298 million, down from $942 million during the same quarter last year. Revenue also fell from $3.53 billion last year to $3.42 billion during the fourth quarter. “Everybody feared we’d end the holiday season with abysmal sales,” Cody Acree, an analyst with Williams Financial, told Reuters. “The reality is that end-demand is better than TI customers had originally feared. We’re not calling for great growth but we’re not heading into the abyss.”

Read