National Semiconductor Makes Cuts In Arlington Plant

National Semiconductor Corp., a manufacturer of analog devices and subsystems, announced Monday that it will divest itself of certain production equipment and lay off some 200 employees at its three wafer fabrication facilities in Arlington, Texas; South Portland, Maine; and Greenock, Scotland. Most of the 200 eliminated jobs are in Arlington and Greenock, National said. The Santa Clara, Calif.-based company explained that the steps were a continuation of its efforts to modernize its facilities and streamline its business model. National said the contraction will incur a charge of some $20 million—$12 million in severance costs, $7 million in disposal expenses and approximately $1 million in contractual and other obligations. National estimated the move will result in a "relatively minor" impact on its Q3 2008 fiscal figures but should lead to a 1 percent savings in gross margin for Q4 2008 and Q1 2009.