The expectation that the demand for static RAMs from high-performance workstation and mainframe builders would soar has not materialised, and as a result, VLSI Technology Inc, San Jose is following National Semiconductor Corp out of the business. The company says that the move, coupled with a recent softening in market conditions, is affecting its operating performance outlook and will result in lower sales and a loss for the third quarter to September 29. VLSI says it will phase out its offering of off-the-shelf memory products, including application-specific memories and statics over the next few months to concentrate on application-specific standard products and application specific integrated circuits; the move will result in about 100 employees, 5% to 7%, losing their jobs and it will take a charge of $12m to $15m this quarter to pay for it.
