Online information source for semiconductor professionals

STMicroelectronics cuts jobs, fabs and capex

29 January 2009 | By Mark Osborne | News > Fab Management

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

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.

Related articles

Micron cuts capex with Singapore NAND fab remaining on hold - 02 October 2008

Applied Materials cuts 1,000 jobs - 15 January 2008

Avago Technologies cuts 400 jobs mainly from Asian workforce - 25 September 2007

Intel plans fab upgrades for 22nm migration: New R&D fab to be built - 21 October 2010

DRAMeXchange projects DRAM capex to fall 47% in 2009 - 06 January 2009

Reader comments

No comments yet!

Post your comment

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