March 15, 2001–Dallas, Texas–Texas Instruments Inc. (TI) yesterday announced plans to consolidate its Santa Cruz, CA, operations into other existing manufacturing facilities, primarily in Dallas and Houston. The TI-Santa Cruz facility, which primarily manufactures semiconductors used in computer hard-disk drives, will be closed in phases through the end of 2001. About 600 people are employed at the site.

“Manufacturing can be more efficiently managed by consolidating this capacity into locations with the potential for higher-volume, more technologically advanced processes,” says Kevin Ritchie, TI senior vice president for worldwide manufacturing operations. “This decision, while difficult, increases competitiveness and efficiency.”

Employees will receive a comprehensive severance package that will include separation pay, extended insurance benefits, and job-search assistance. TI will establish an outplacement center on site through the duration of the phase-out, with professional consultants to counsel employees and assist them in locating new jobs.

This consolidation is part of previously discussed cost-reduction activity and is a follow-on to TI’s decision to more tightly focus the semiconductor products it makes for the hard-disk drive market and shift more resources to higher-growth opportunities.