TI earned $298 million or 25 cents per share which is ahead of the 23 cents per share Wall Street was forecasting. Q4 2011 was the first full quarter for the company after the absorbed National Semiconductor which became TI’s Silicon Valley presence in September of 2011. TI, like other silicon companies, spent part of 2011 recovering from supply chain demand problems stemming from last years earthquake and tsunami in Japan.
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Texas Instrument’s CEO Rich Templeton said that the pleasant surprise came from an uptick in demand for the companies processors. TI has a far more robust portfolio of products, than just Android smartphone processors. They are the creators of the DLP technology that is fueling televisions, projectors and national movie houses. They of course, have their line of high school and college graphing calculators, which are a staple of education. They also supply the chips for thousands of products world wide.
Despite outperforming expectations of both Wall Street and inner management, Texas Instruments said they would be closing a factory in Japan and another in Houston Texas. The closure will result in about 1000 displaced jobs.
The two closing factories are two of the oldest factories within the company. The Houston factory is 42 years old while the factory in Japan is 32 years old. Texas Instruments will shift production to other factories that it already owns. The closures are expected to save TI $100 million dollars annually.
Despite shedding 1000 workers with these closures Texas Instruments picked up 5,000 workers four months ago when it closed on it’s deal with National Semiconductor.