Online information source for semiconductor professionals

MEMC set to shift wafer production to Asia with the loss of over 500 jobs

08 September 2009 | By Mark Osborne | News > Materials and Gases

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

New Product: ASML Brion‚??s Tachyon MB-SRAF enables OPC-like compute times - 19 September 2011

Tough business conditions and polysilicon production problems have surfaced at MEMC, forcing the company to adjust revenue guidance and announce plans to shift some of its ingot and wafer production to Asia, which will affect approximately 540 employees. The company had previously announced layoffs in three of its U.S. based manufacturing facilities. MEMC said that it would cease production of ingots and wafers at facilities in Sherman, Texas and St. Peters, Missouri, which would begin in stages starting in 2010 and through early 2011.

"We must continue to aggressively drive all unnecessary costs out of the business during these extraordinary times,” noted Ahmad Chatila, MEMC’s  Chief Executive Officer. “We will be shifting this high-volume production closer to a number of our customers, who are located in lower cost regions. This will allow us to reduce manufacturing costs and to serve our customers effectively, with the right cost-competitive capacity - in the right places - to meet their needs."

Silicon wafering operations in St. Peters will cease by the end of the second quarter of 2010, while epi and crystal operations will stop by the end of the first quarter of 2011. The MEMC corporate headquarters, as well as research and development and advanced Silicon on Insulator (SOI) manufacturing, are expected to continue at the St. Peters location.

Equipment production problems at its polysilicon facility in Pasadena, Texas saw the majority of the plant closed on August 7, 2009 with normal production levels not expected to be resumed until near the end of September, 2009.

MEMC guided revised revenue for the third quarter to be in the range of US$285-US$315 million, down from previous guidance of between US$300-US$350 million. Margins will also take a hit, down into ‘single digit’ territory compared to margins of 12.3% in the second quarter and guidance for margins to rise slightly.


Related articles

200 expected to be laid off by MEMC Korean subsidiary - 15 April 2009

Higher wafer prices help MEMC - 03 February 2011

Entegris to close manufacturing plant in Chaska - 05 November 2008

Edwards to close manufacturing operations in UK - 18 January 2010

Sumco Techxiv cuts 300mm wafer production - 10 December 2008

Reader comments

No comments yet!

Post your comment

Please enter the word you see in the image below: