National Semi may close plant again

June 11, 2001 – Santa Clara, CA – National Semiconductor’s Arlington, TX, plant resumed production Monday after an eight-day shutdown, the third time this year that chip manufacturing has been halted.

And with demand for chips continuing to lag, more shutdowns could be in the offing.

“There’s a possibility we might have some days shut down around the July 4 holiday, but we don’t have it scheduled yet,” said Cindy Goforth, spokeswoman for the Arlington plant.

The Arlington plant, which produces analog chips that convert digital data into sound, text and images, normally operates 24 hours a day, seven days a week.

But Goforth said that due to mounting chip inventories, the plant ceased operations from May 26 through June 10. The plant also underwent an eight-day shutdown in March and a shutdown for four days in April.

The shutdowns affect the bulk of the company’s Arlington work force, which numbers about 960. In mid-May, the plant laid off 117 employees as part of a 10% companywide employment cutback. Goforth said that without the temporary plant shutdowns, National could have to lay off even more workers.

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