National Semiconductor stop slugging it out in the PC processor market

National Semiconductor stop slugging it out in the PC processor market
Tom Foremski
National Semiconductor is quitting the PC microprocessor business as competitive pressures make profits elusive and as it focuses on its core analogue chip business.
The company said it will cut 550 jobs which include 165 jobs lost from its Singapore operations announced in April. The move comes just 18 months after it acquired Intel compatible microprocessor maker Cyrix for $550m. Leaving the PC processor business will cost it between $250m and $300m in a one time charge.
The company will retain its integrated microprocessor products with its PC system-on-a-chip but this will be targeted at information appliances and set top TV boxes plus other embedded applications.
“We will immediately cease slugging it out in the PC processor market, which has been dragging down our financial performance for several quarters,” said National CEO Brian Halla. “By contrast, the information appliance market is now on the launch pad. Its growth will be fuelled by delivering Internet connectivity with push-button simplicity to office, home and mobile users.”


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