Friday, September 5, 2003
A sweeping plan by STMicroelectronics to reorganize its European and U.S. wafer fab operations is meeting with resistance from labor unions, whose representatives walked out of talks with the France-based semiconductor supplier.
A company spokesman confirmed that talks between unions and STMicroelectronics' French unit, STMicroelectronics SA, broke off Wednesday (Sept. 3). No new talks are scheduled, he added.
STMicroelectronics plans to migrate at least half of its European and U.S. 6-inch wafer production either to 8-inch wafer fabs or to a 6-inch fab in Singapore. This would entail scaling back production at a 6-inch fab in Rennes, France, which employs 428 workers. Production would move to a Rousset, France, plant that will eventually convert to producing 8-inch wafers.
A plant in Tours, France, that produces specialized discrete components would continue to operate since those parts are not subject to competitive pressures facing older 6-inch IC technology, the company said.
STMicroelectronics said the changes are needed as competitive pressures force the move from 6- to 8- and 12-inch technologies. Pricing pressure and the trend for ST's customers to shift their own production to Asia are also factors.
According to the plan, ST would offer all Rennes workers jobs at its other France sites, and compensate those not accepting job transfers.
By: DocMemory
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