From news release:

DALLAS (October 22, 2007) - Over the next two years, Texas Instruments Incorporated (NYSE:TXN) will consolidate its Tucson, Arizona, manufacturing operations into its Sherman, Texas, facility where it can manufacture higher volumes of products more efficiently.  This consolidation supports TI's growing analog focus and is part of the company's strategy to make better use of its overall manufacturing capacity. 

TI is proactively talking with employees and customers, explaining in detail the two-year transition plan.  About 100 TI jobs will be reduced as a result of this action, including a reduction of approximately 300 jobs in Tucson while adding about 200 jobs in Sherman.  The majority of the impacted employees are expected to continue working at the Tucson site until the second half of 2009, although some will be released in mid-2008.  This consolidation will be seamless to customers, who should experience no impact in delivery times, quality or product availability.

The new jobs in Sherman will be phased in during the same time frame and will consist primarily of technical positions.  When the consolidation is complete, approximately 1,000 TI employees will be based in Sherman.  Impacted employees from Tucson will have the option to relocate to Sherman or other TI sites, if their skills match available openings and they are able to relocate. 

The TI Tucson site will remain an important and long-term product design center for the company, where about 300 employees, including engineers, will continue developing some of its most advanced Analog products.  Production in Tucson is expected to stop by the end of 2009.  

A comprehensive separation package will include separation pay, extended insurance benefits and job-search assistance.  TI will offer outplacement consultants to counsel employees and assist them in locating new jobs.

TI will incur total restructuring charges of about $35 million, distributed across the consolidation period.  TI expects to achieve annualized savings of about $20 million when completed.

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About Texas Instruments

Texas Instruments Incorporated provides innovative DSP and analog technologies to meet our customers' real world signal processing requirements.  In addition to Semiconductor, the company includes the Education Technology business.  TI is headquartered in Dallas, Texas, and has manufacturing, design or sales operations in more than 25 countries.

Texas Instruments is traded on the New York Stock Exchange under the symbol TXN. More information is located on the World Wide Web at http://www.ti.com.