The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1996, Landmark Communications, Inc.

DATE: Tuesday, April 16, 1996                TAG: 9604160324
SECTION: BUSINESS                 PAGE: D2   EDITION: FINAL 
SOURCE: ASSOCIATED PRESS 
                                             LENGTH: Short :   42 lines

MOTOROLA DELAYS BUILDING OF VA. PLANT

Motorola Inc. said it will delay construction of its planned $3 billion computer chip plant near Richmond by at least a year.

Motorola last week said it was reviewing construction schedules on the Goochland County plant and three other projects as part of a capital spending cutback of $900 million in 1996.

The company said it now plans to complete construction of the Richmond area plant in late 1997. Construction on the chip plant will begin in late 1997 or early 1998, depending on business conditions, the company said.

Slower growth in the chip business since last autumn and recent boosts in capacity at a Motorola plant in Austin, Texas, were two key factors that led to the decision to delay the Goochland plant, Motorola said.

The company said it still plans to have the Goochland plant fully built and operating with 5,000 employees in a decade.

So far, the company has spent $20 million in Virginia, buying land, working on the designs for its facilities and preparing the site. Now, Motorola says it plans to spend an additional $10 million to $15 million to finish utility improvements by next year.

``We plan to meet our targets of investment, employment and manufacturing production as expected over the next decade,'' Motorola Semiconductor senior vice president Paul J. Shimp said in a statement.

But the precise construction schedule may change from time to time, he added.

``The fact that schedules are adjusted periodically isn't a surprise,'' said Robert T. Skunda, Virginia's secretary of commerce and trade. ``It doesn't do anything to shake our faith in Motorola.''

Virginia state government offered Motorola $85.6 million in financial incentives to clinch the deal. by CNB