By editorial@silicon.com, 20 November 1998 17:01
NEWS US-based Texas Instruments (TI) is closing its Portuguese semiconductor plant and selling its electrical components factory in Italy. The Portuguese plant, opened in 1993 - jointly owned by TI and Samsung - will close in March with the loss of 740 jobs. TI's Malaysian and South Korean plant will take on an extra share of chip operations to compensate. According to TI, a decline in memory chip prices and lower labour costs in Asia prompted the decision. But the Portuguese government has said the closure is a breach of an $90m investment contract due to expire in 2004, and is demanding compensation. The government is also claiming repayments of state and European incentives. TI said it is working to resolve the conflict. TI's Italian electrical components plant will be bought by communications company Telital, which plans to convert it into a telecoms equipment factory, saving 400 jobs. TI products will continue to be manufactured for a transitional period.
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