Jan. 29, 2002 – Tokyo, Japan – Calfornia-based LSI Logic Corp. announced plans to cut production in Japan, in line with its major restructuring push in the US, company sources said.

LSI Logic Japan Semiconductor Inc., which operates one of the group’s major plants, plans to offer 300 of its 560 employees early retirement packages and demote the remaining permanent employees to the status of contract workers, reported the Nihon Keizai Shimbun.

The unit, which has produced chips in Ibaraki Prefecture since 1987, has opened automated production lines and clean rooms to produce application-specific integrated circuits. It will continue production until September 2002, and has yet to decide whether to continue after that time.

LSI Logic plans to consolidate its production and development bases and to sell some operations in the US.