Varian Associates, Palo Alto, announced that it will withdraw from the semiconductor lithography-equipment business and will dispose of its lithography-products division.
Varian Chairman Thomas D. Sege said pretax losses for lithography-division products during the first six months of fiscal 1985 amounted to about $7 million. He said second-quarter losses alone were $12 million.
The division employed about 190 persons, primarily in three Massachusettslocations--Danvers, Gloucester and Lexington. About 100 will be laid off immediately, and John D. Tompkins, president of Varian's semiconductor-equipment group, said the company probably wouldn't be able to absorb more than a handful at other Varian facilities.
In a separate announcement, Varian said it agreed to buy the assets of Dallas-based Continental Electronics Manufacturing for an undisclosed amount.