The Greensboro, North Carolina based Chip maker, RF Micro Devices Inc. yesterday announced that it is planning to cut $75 million in product development expenses this fiscal year by eliminating its wireless systems unit, which includes a GPS chip business and a cellular transceivers business.

The company is also planning to cut its work force by about 350 employees as a result. The move, according to the company, is part of a plan to increase its focus on its core semiconductor component opportunities.

In a statement, RF Micro Chief Executive and President, Bob Bruggeworth said, "These strategic actions will enable RFMD to deliver more predictable financial results and substantially higher profitability.”

The company expects to log $40 million to $50 million in restructuring charges in the next two quarters, about two-thirds of which it anticipates will be non-cash. It expects to begin realizing savings in its June quarter. The full benefit of the cuts should be realized by the December quarter, the company said.

The company reported that it was talking with strategic and financial buyers about some of the wireless system unit's assets. RF Micro shares rose 16 cents, or 4.9 percent, to close at $3.45.