DOW JONES NEWSWIRES
Texas Instruments Inc. (TXN) said recovery at two of its
manufacturing sites in Japan, including a plant that suffered
"substantial damage" after a 8.9-magnitude earthquake, was
processing well and on schedule to return to full production.
Earlier this month, the chip maker had disclosed its Miho, Japan
manufacturing plant, roughly 40 miles northeast of Tokyo, suffered
damage to the infrastructure systems that deliver chemicals, gases,
water and air. The plant was responsible for about 10% of the
company's output as measured by revenue last year.
On Tuesday, Texas Instruments said the site achieved a
significant milestone this Sunday, as repairs were completed on the
infrastructure systems. Additionally, more than 90% of the
equipment has been electrically checked out.
The company now estimates that initial production lines at Miho
will resume in mid-April, and full production will resume in
mid-July. That translates to full shipment capacity in
September.
Meanwhile, the plant in Aizu, about 150 miles north of Tokyo,
has resumed initial production and is on track for full production
by mid-April or earlier. The company's third plant in Hiji wasn't
damaged.
Texas Instruments, which makes chips used in everything from
cellphones to industrial equipment, affirmed it expected some loss
of revenue in the first quarter and more lost revenue in the second
quarter. It expects to fully describe the financial impact of the
disaster at the time of its first-quarter earnings report on April
18.
The company joined a host of technology companies that suffered
from Japan's devastating earthquake and tsunami.
Shares were down 0.5% to $34.80 in after-hours trading.
-By John Kell, Dow Jones Newswires; 212-416-2480;
john.kell@dowjones.com