As part of its ongoing bid to maximize resources and support for its analog businesses, National Semiconductor Corp. today announced plans to close its assembly and test plant in Toa Payoh, Singapore.

Following National’s announcement in March to seek a buyer for its Singapore plant, the company has now decided to accelerate its cost savings by closing the plant and consolidating production volume into its assembly and test plants in Melaka, Malaysia, and Suzhou, China.

While the majority of the equipment in the Singapore plant will be transferred to Malaysia and China, the employees from that plant will not fare as well. The closure will impact approximately 950 employees, including professional staff, technicians and operators. The management team in Singapore will work with local government agencies and other employers on job placement opportunities for affected employees, National said in a statement.

Short-term, the company expects to incur charges in the range of $27 million to $30 million during fiscal Q1 2006, primarily for severances. Long-term, however, National projects quarterly cost savings of $4 million to $6 million to result from this action.

The majority of the activities associated with the closure, including equipment transfers to other plants, are expected to take place over nine to 12 months.

National’s fiscal Q1 2006 ends August 28, with results to be announced on September 8.

By: DocMemory
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