"It's a real problem," he said, noting that Harris's semiconductor division makes special radiation-hardened parts for sensitive military equipment.

In addition, the semiconductor division is even working through holidays to keep up with strong demand for memory chips from American personal computer companies.

Earlier this month Gould said it would sell its semiconductor division for $70 million and reduce its staff.

He helped design systems for the early weather and communications satellites and organized the company's semiconductor division.

Gould will sell its semiconductor division and reduce its corporate headquarters staff by 30 percent.

The semiconductor division, for instance, has reduced procurement costs 20 percent as a result of buying from multiple sources.

He was an executive in the semiconductor division in the 1980's, when it became one of the world's largest chip producers.

Motorola Inc's semiconductor division will begin sampling the 68060 next generation 32-bit microprocessor in the third quarter.

The semiconductor division was renamed Zarlink to reflect its interest in networking.

Last year, the semiconductor division was a bright spot at Philips, contributing half the company's record profit of $8.5 billion.