Online information source for semiconductor professionals

ASM International increases pace of manufacturing shift to Singapore

09 January 2009 | By Mark Osborne | News > Wafer Processing

Popular articles

New Product: Applied Materials new EUV reticle etch system provides nanometer-level accuracy - 19 September 2011

Oberai discusses Magma’s move into solar PV yield management space - 29 August 2008

‚??Velocity‚?? the new buzzword in Intel‚??s PQS annual awards - 12 April 2012

Applied Materials adds Jim Rogers to Board of Directors - 29 April 2008

TSMC honors suppliers at annual Supply Chain Management Forum - 03 December 2008

ASM International 300mm Vertical FurnaceDue to the decline in front-end equipment sales and the subsequent under-utilization of its sub-assembly equipment facility in Singapore, ASM International is increasing the pace of shifting products currently manufactured in The Netherlands to Singapore. In a plan originally set out in April, 2008 to reduce operating costs and return to profitability in its front-end division, ASM began shifting generic parts and subassemblies of its vertical furnaces, epitaxy and PECVD tools and components for its ALD tools to Singapore. In the latest transfer phase all vertical furnace manufacturing will move to Singapore over the next 12 months, the company said.

As a result, its assembly facility in Almere, The Netherlands will see a workforce reduction of approximately 200. According to ASM, approximately 350 people will remain as its European workforce, focused on R&D and regional sales and service support activities.

"Lowered capacity utilization at our FEMS facility - the result of deteriorating global economic and industry conditions, today allows us to execute several steps in our 'April 2008 Roadmap to Front-end Profitability' simultaneously and to accelerate our Roadmap,” commented Chuck del Prado, President and Chief Executive Officer of ASM International. “The measures we are announcing today will lead to a leaner and more focused, cost-competitive Front-end operation, and one that is capable of generating higher gross margins with a structurally lower cost-base."

Vertical furnaces have long been regarded by chip manufacturer’s as a commodity product, many choosing to select several vendors for thermal processing applications at single sites to keep competition fierce for sales. ASM said that the move to Singapore would result in a 30% or more reduction in furnaces cost break-even level.

Related articles

Celerity establishes new facility in Singapore - 28 May 2008

ASM International increases pace of restructuring again - 20 July 2009

SSMC picks best suppliers - 15 June 2009

Applied Materials new Singapore manufacturing hub to handle 50% of business flow - 13 April 2010

STMicroelectronics offers re-training to Singapore employees - 25 August 2006

Reader comments

No comments yet!

Post your comment

Name:
Email:
Please enter the word you see in the image below: