NEARLY 450 workers at one of Southampton's most famous companies face an uncertain future.

Dutch electronics giant Philips is to hive off its global semiconductor business within the next few months, retaining all but a minority stake.

This is another potential blow to the local economy. Earlier this week savings giant Skandia revealed it is to cut one-third of the 1,700-strong workforce in Southampton.

Philips' research and development centre here is the biggest of its kind in Britain and is home to some of the brightest minds in the UK.

Staff at the 16-acre site on Millbrook Industrial Estate are at the cutting edge of smart chip technology for electronic goods like televisions, DVDs, mobile phones, radios and coffee makers.

The news will undoubtedly cast a shadow over celebrations planned for July 15 to mark 50 years in Southampton. Group chief executive Gerard Kleisterlee e-mailed all employees to inform them that the semiconductor arm of the business was to be sold off as a stand-alone company, possibly floating on the stock market.

A new name and identity will be announced soon. Kleisterlee says the "pending changes may well have an impact on the environment you do your work in".

He admitted that there would be changes in certain, as yet undisclosed, countries.

Mr Kleisterlee added: "With this letter I would like to encourage all involved to embrace and prepare for this new reality quickly.

"In the countries affected we will, through the normal channels and common practices, intensify consultations with the employee representatives accordingly."

That last reference has been seized upon by industry analysts as an indication that redundancies may well be on the cards. A spokesman for Philips denied that was the case, saying: "There are no job cuts."

But technology webzine EETimes said: "The devil is in the detail and it could be the forerunner of transitional job cuts."