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TI sees lost revenue from 2 chip plants in Japan

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CIOL Bureau
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SAN FRANCISCO, USA: Texas Instruments warned on Monday of lost revenue from two of its semiconductor plants in Japan following the country's biggest-ever earthquake.

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The chip maker, which will supply the dual-core processor for Research In Motion's upcoming PlayBook Tablet, said damage from the quake as well as power-supply disruptions hindered efforts to restart the factories.

The Dallas-based company said in a statement it expects to face repair expenses and revenue loss in the first and second quarters and that it is still unclear how badly its equipment was damaged.

Texas Instruments said its plant in Miho, which makes analog chips and DLP digital light chips for digital projectors such as the Pico projector, would return to production in stages from May to July.

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The company's stock fell 1.9 percent in after hours trading after ending up 0.49 percent at $34.56.

The Miho plant, about 40 miles northwest of Tokyo, accounted for 10 percent of Texas Instruments' output last year and the company said it has so far found alternative manufacturing capacity for 60 percent of the facility's production.

Texas Instruments said equipment at its Aizu factory, about 150 miles north of Tokyo, is being restarted following the quake and that it should return to full production by mid-April if it receives adequate power.

Texas Instruments bought its Aizu facility from Spansion last year and was still processing wafers on behalf of Spansion when the earthquake hit last week

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