Online information source for semiconductor professionals

NXP Semiconductor closing four fabs

12 September 2008 | By Mark Osborne | News > Cleanroom

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

Frans van Houten, NXPNXP Semiconductors has said that it is undertaking a major restructuring program that will see the closure of four fabs, while consolidating production in three others. The fabs to be closed outright include Fishkill, New York, ‘ICN5’ part of a fab facility complex in Nijmegen and its ‘ICH’ fab at its Hamburg complex. NXP’s fab in Caen, France will be put up for sale, though failure to find a buyer will see the fab shuttered with the other fabs in 2009, the company said. Globally, the restructuring is expected to affect 4,500 employees in manufacturing, R&D and support functions, though the biggest impact is expected to be in The Netherlands and Germany.

NXP said that production would be consolidated at three other fabs in Nijmegen and Hamburg, as well as at its joint venture fab with TSMC in Singapore, SSMC. With the shift of production, NXP will use more advanced process technologies at its existing facilities, enabling lower production costs in the future.

“This restructuring is a tough measure and it is regrettable that we need to let people go. However, the changes will make NXP a strong, profitable and growing company, with a positive cash flow,” commented Frans van Houten, NXP’s Chief Executive Officer(pictured). “NXP is transforming into a globally competitive semiconductor company with scale and leadership in its core businesses. Measures include increasing the competitiveness of our manufacturing base and reduction in our work force, resulting in a leaner, customer focused company, well positioned for growth in our core businesses.”

The restructuring is expected to cost $800 million and generate annual savings of $250 million.

Related articles

Toshiba considering fab restructuring - 03 December 2008

Atmel considers Microchip Technology and ON Semiconductor‚??s new buy-out offer - 02 October 2008

Qimonda closes Inotera share deal with Micron - 26 November 2008

A shot in the foot - 12 December 2008

Shin-Etsu takes business environment a month at a time - 28 April 2009

Reader comments

No comments yet!

Post your comment

Please enter the word you see in the image below: