Monday, September 15, 2008
A restructuring of manufacturing, R&D and support at NXP, the former Philips semiconductor division, will cost an estimated $800 million, save $550 million annually and affect approximately 4,500 NXP staff, or about 15 percent of its workforce.
Frans van Houten, president and CEO of NXP (Eindhoven, Netherlands) told a teleconference that "redundancies are inevitable" with the biggest impact coming in the Netherlands, Germany, France and the United States.
A number of plant closures are scheduled to happen during 2009 and 2010 as NXP consolidates its internal manufacturing in Nijmegen, Hamburg and Systems on Silicon Manufacturing Co. Pte. Ltd. (SSMC), a Singaporean joint venture with leading foundry TSMC.
The changes come in response to a challenging economic environment, a weak U.S. dollar, and the reduction in size of the company after moving its wireless business into a joint venture with STMicroelectronics NV, van Houten said. Van Houten said NXP plans to close a fab in East Fishkill, New York in 2009 and close the ICN5 portion of Nijmegen and the ICH part of NXP's Hamburg facility in 2010. In addition NXP plans to sell off or close a pilot fab in Caen, France, during 2009. These steps were necessary because NXP's internal manufacturing facilities were under utilized, van Houten said.
By: DocMemory
Copyright © 2023 CST, Inc. All Rights Reserved
|
