Wireless chip manufacturer TriQuint Semiconductor ( TQNT) plans to lay off 7% of its workforce, or 112 employees, and take a charge of a penny per share in the third quarter for severance.

The move came shortly ahead of the company's midquarter earnings update expected after the closing bell Wednesday. In late July, the company raised its guidance for the quarter, saying it expects results in a range of break-even to a loss of 2 cents a share on revenue of $69 million to $74 million.

TriQuint shares saw an unexpected one-day boost last week after unfounded rumors sent the stock soaring. The rumor involved its major competitor RF Micro Devices ( RFMD) losing the lucrative Nokia ( NOK) account to TriQuint. RF Micro said the rumor wasn't true and said it was trying to figure out who spread them. TriQuint executives reached last week declined to comment, citing policy.

TriQuint shares lost 18 cents, or 3.13%, to $5.60 in the morning session amid a marketwide selloff, pulled down by a revenue warning from Nortel Networks ( NT). RF Micro dropped 44 cents, or 5.87%, to $7.06.

Wednesday's news is another indication of how the tepid growth in wireless has impacted the entire sector. "This is a difficult but necessary action impacting a loyal and hard working team of employees," said TriQuint President and CEO Ralph Quinsey, who recently joined the company. "However, with the continued impact of slow telecommunications spending, we are adjusting our workforce at these locations to better match capacity with demand."

The company said about 15% of the 465 employees in the Hillsboro, Ore., branch and 10% of the 425 employees in the Richardson, Texas branch will be affected.