New CEO strives to revitalize National Semiconductor; Halla hopes revamping will turn chip maker into an industry leader

Article Abstract:

Brian Halla, the new CEO of National Semiconductor Corp, is planning a major restructuring of the custom chip maker. Halla's appointment in May 1996 has brought several personnel changes to National Semiconductor, including the lay offs of 600 employees, the resignations and dismissals of 14 out of 56 vice presidents, the departure of two chief operating officers, and the possible termination of an additional 800 positions. In fact, National Semiconductor has attributed $275 million to its restructuring as a first fiscal-quarter write-off. Halla is also responsible for the review of 160 research projects slated for potential abandonment. Halla's most controversial step in his restructuring strategy is his imminent plan to divest its commodity chip unit, which accounted for 23.3% of the company's total revenue last qtr. Halla expects that this sale to Fairchild Semiconductor will provide National Semiconductor with the necessary cash to carry out his overhaul plans.

Integrated Circuits, Management, Microprocessor, CPUs (Central processing units), National Semiconductor Corp., NSM, Reorganization and restructuring, Fairchild Semiconductor International Inc., Company Employee, Company Restructuring/Company Reorganization

---

Chip indicator moved higher in September

Article Abstract:

The Semiconductor Industry Association reports its book-to-bill ratio rose to 0.99 in Sep 1996, which indicates the US chip market is recovering. The industry was expecting a figure more in the 0.94 to 0.95 range. The book-to-bill ratio is the semiconductor industry's leading indicator. The 0.99 figure means that for every $100 worth of products shipped the vendors received $99 in new orders. Any figure below 1.0 indicates a growing market, a figure above 1.0 shows a decline in the market. The Semiconductor Industry Association tracks the figures for North, Central and South American chip markets. A glut in the chip market and declining memory-chip prices has decreased chip demand since mid-1995. Intel's 3rd qtr 1996 earnings are above expectations and many industry observers believe Christmas season sales will lead to an increase in chip orders. Motorola and Advanced Micro Devices are reporting declines in chip orders.

Forecasts and trends, Industry trend, Market trend/market analysis

---

New chip indicator is off to rocky start

Article Abstract:

Controversy surrounding the book-to-bill ratio induced the Semiconductor Industry Association's (SIA) to replace its main statistical indicator of industry health with the new Global Billings Report, but the new indicator may also prove inadequate. It fails to take order statistics into account, according to critics, and for that reason may not be forward-looking enough. Unlike the book-to-bill ratio, the Global Billings Report does take into consideration sales figures from around the world rather than just those from North and South America. The book-to-bill ratio was much maligned in part because its limitation to the Western Hemisphere left investors unaware of the booming semiconductor markets in Asia and other developing regions.

Standards, Wall Street, Semiconductor Industry Association, Trade associations, Industry association information

Similar abstracts:

• Abstracts: Semiconductor (capital equipment). Semiconductor (capital equipment) industry. part 2
• Abstracts: Judges turn back law to regulate Internet decency; free speech case; ruling by panel moves the First Amendment into a new era. part 2
• Abstracts: Microsoft moves to standardize creation of Internet channels to broadcast news. Netscape offers 'push' abilities in new software
• Abstracts: JIT manufacturing: a survey of implementations in small and large U.S. manufacturers. Impact of plant size and focus on productivity: an empirical study
• Abstracts: Petroleum (integrated) industry. part 8

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.