Austin American Statement | March 14, 2011 | Kirk Ladendorf
Texas Instruments Inc. said Monday that one of its three semiconductor manufacturing operations in Japan suffered “substantial damage” from last week’s massive earthquake and that it will affect the company’s revenue in the first and second quarters.
Meanwhile, Austin-based Freescale Semiconductor, which operates a factory close to the center of the earthquake zone, said it is still too early to accurately assess the damage. The factory is in Sendai, which is close to the heaviest earthquake damage.
Texas Instruments said damage to its factory in Miho, 40 miles northeast of Tokyo, will keep it from returning to full production until July. The factory accounted for about 10 percent of the company’s production revenue last year.
The quake damaged systems that deliver chemicals, gases, water and air at the plant and repairs should take about three weeks, the company said.
Repairing the damage will cause the company to incur extra expenses, the company said in a statement. The company expects to report the financial impact of the quake in detail in its first-quarter earnings report April 18.
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