Online information source for semiconductor professionals
STMicroelectronics cuts jobs, fabs and capex
Popular articles
Samsung and Micron gain most market share in DRAM crisis - 17 February 2009
Oberai discusses Magma’s move into solar PV yield management space - 29 August 2008
TSMC hosts 2008 Green Forum on ‘green’ factories - 31 October 2008
Micron moving fast on Hynix in Q208 NAND flash rankings, says iSuppli - 19 August 2008
Numonyx to close California Technology Center - 12 August 2008
Loss-making STMicroelectronics is planning to reduce its cost structure
by more than US$700 million in 2009 as it struggles to return to
profit. Approximately 4,500 jobs will go, particularly in its
manufacturing operations, as it streamlines.
STMicroelectronics expects to close its 150mm fab in Carrollton, Texas as well as reduce production at its 200mm fab in Pheonix, Arizona to a ‘mini-line.’ Back-end operations in Morocco will close while operations in Malta will be downsized. In Singapore, STMicroelectronics will reduce 150mm wafer capacity and relocate back-end operations to its facility in Shenzhen, China. The streamlining of manufacturing operations is expected produce US$170 million in savings in 2009.
CapEx for 2009 has been lowered to US$500 million compared to US$981 million in 2008, a decline of almost 50%. The company plans to further support its asset-lite plans with a target of a 10% capex-to-sales ratio.