MANHASSET N.Y. Intersil Corp. said Tuesday (July 13) it would eliminate 200 positions by the year's end in an effort to streamline manufacturing and support functions.
Intersil, (Milpitas, Calif.), a supplier of high performance analog semiconductors, expects the workforce reductions to result in annualized savings of $14 million. The company will record a $6 million charge in the third quarter for the restructuring actions.
The company expects to reinvest much of the savings into research and development along with field sales. Intersil plans to open new sales and technology centers near its largest potential global customers and accelerate staffing in the growing China and Korea markets.
Though Intersil confirmed it would meet projected revenue and earnings guidance for the second quarter ended June 30, the company's actions were indicative of uneasiness among semiconductor suppliers, some of whom expect second quarter revenue to fall short of expectations.
On Monday, LSI Logic Corp. lowered second quarter revenue projections, following similar announcements in recent weeks by Amkor, Exar, Sipex, Trident and Conexant Systems.