$53.5-Million Shortfall in Quarter Its Largest Ever : National Semi Reports Big Loss

National Semiconductor Corp. reported its biggest quarterly loss ever Wednesday, saying it went $53.5 million in the red during the three-month period that ended Sept. 22.

The Santa Clara, Calif., company’s loss, one of largest in the history of computer chip manufacturing, reflects the continuing effect of a 18-month slump that has dampened demand and pushed prices down in every segment of the computer industry.

Particularly hard hit have been the makers of computer chips, the thumbnail-sized wafers that are etched with integrated circuits to provide electronic instructions for everything from digital watches to desk-top computers.

The company said it has implemented several cost-cutting measures, including reducing its work force during the first quarter, continued reductions in capital spending, permanent and temporary plant closings, reduced workweeks, a freeze on hiring and the postponement of wage increases.

Another of the Silicon Valley’s largest chip makers, Intel, also said it has implemented cost-cutting measures to cope with declining sales. It said that the salaries of nearly half of its work force have been cut by as much as 8% and that it would close all U.S. operations for six days.

National Semiconductor’s report, however, showed how deep the industry’s slump has cut. The company said sales for the period, which is the first quarter of the company’s 1986 fiscal year, were $423.4 million.

For the first quarter in fiscal 1985, National Semiconductor earned $35.9 million on sales of $529 million.

In trading Wednesday on the New York Stock Exchange, National Semiconductor stock was off 12.5 cents to close at $11.875.

Intel and the other major chip makers in the United States--Advanced Micro Devices, Motorola and Texas Instruments--are expected in coming weeks to report similarly dismal quarterly results, though none as severe as National Semiconductor’s.

National Semiconductor’s poor showing, which analysts had anticipated, comes just two weeks after the Semiconductor Industry Assn. forecast that sales would rise 18% to near-record levels in 1986.

But the association’s prediction for this year had said that sales would rise 22% to $25.5 billion worldwide; instead, they are expected to fall 17% by year-end.

The news also comes two days after National Semiconductor, Intel and AMD filed a complaint with the Department of Commerce and the U.S. International Trade Commission accusing a group of Japanese companies of selling computer-memory chips in the United States below manufacturing cost.

“Our first-quarter financial performance was (hurt) by operating results in our semiconductor division due to reduced demand and strong pricing pressure,” Charles E. Sporck, National Semiconductor president and chief executive, said in a statement.

“We have recently experienced a marginal improvement in semiconductor order rates, but until we have a significant and sustained improvement in those rates, our financial performance will continue to suffer,” he said.

National reported sales of $1.8 billion and net earnings of $43.2 million during fiscal 1985. About 60% of the company’s products are specialized chips developed by the company.

At Intel, the company said the pay cuts range from 4% to 8% and will affect about 14,500 employees nationwide. Intel employs 24,231 people worldwide.

“We went with the pay cut, hoping to keep as much of the work force intact as possible,” Intel spokeswoman Glynnis Kaye said Tuesday.

Intel has already imposed two major layoffs this year. About 900 workers, primarily in Oregon and Arizona, were laid off in February, and another 950, mostly Californian workers, were cut in July. In August, the company was forced to furlough most of its U.S. work force for seven days without pay.

Intel plans to close its operations from Dec. 23 to Dec. 31. Workers will be paid for the Christmas holiday and can use two vacation days, Kaye said. The remaining days will not be paid.

In addition, Intel has frozen all merit pay increases, she said.

Intel’s workers were told of the cuts last Thursday, three days before the end of the company’s third quarter, Kaye said. She declined to reveal Intel’s results for the period but said the company will break even or report a slight loss.