Unitrode chip ban imposed by U.S.; loss for year seen

The US Department of Defense has issued a 'stop shipment' order covering shipments of semiconductors from Unitrode Corp, due to quality-control concerns. Earlier in Dec 1989, Unitrode had imposed a halt in their own shipments, and will continue to do so until the company and the government have completed an investigation into the matter. The semiconductors that were banned are used in military products, accounting for 25 percent of Unitrode's $163.3 million in 1988 sales. On the New York Stock Exchange, Unitrode shares closed at $5.875, down 25 cents per share. The company does not know how long the investigation will take.