With falling sales and mounting losses, Freescale Semiconductor is set to close two fabrication facilities. A 150mm fab in Toulouse, France and Sendai, Japan are close by the end of 2011 at a cost of US$200 million. Freescale expects to make annual savings of approximately US$100 with the closures. With the closure of its 150mm fab in Scotland, Freescale is left with three 200mm fabs in operation.
According to Rich Beyer, Freescale’s CEO, the remaining 200mm facilities would adequately meet future production capacity requirements. Its leading-edge products are fabricated at foundries. As a result, capital expenditures are minimal (approximately US$80 million per annum), for the next few years, according to the company.
Freescale’s Toulouse fab started production in 1969. The Sendai fab was built in 1987.
According to AFP news agency, approximately 800 workers at the Toulouse fab will lose their jobs.