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Fairchild closes 6in fab, trims workforce

Posted: 10 Jan 2011 ?? ?Print Version ?Bookmark and Share

Keywords:6in fabs? closures? semiconductor job cuts?

Fairchild Semiconductor has announced that it will close the 6in manufacturing line in its manufacturing plant in South Portland, Maine and move production to its 8in fab in the same facility.

Aimed at reducing costs, the transfer will mean the loss of about 120 jobs at the facility over a nine-month period. The move was expected.

The South Portland site manufactures products including analog switches, offline power switches, power factor controllers and interface devices for end applications such as mobile phones, digital cameras, MP3 players, DVD players, games, notebook computers and other highly integrated compact devices.

The company employs approximately 800 people in Maine.

Fairchild provides a standard benefit package for employees impacted by this restructuring, including outplacement services based on the individual needs and a severance package based on their length of service. The benefit package includes: severance pay ranging from three weeks to a year; full medical benefits for between three months and a year; and continuing full dental and vision coverage for a month.

In 2009, Fairchild closed two fabs and eliminated at least 200 jobs in an effort to cut costs. San Jose-based Fairchild closed its wafer fabrication plant in Mountaintop, Penn., and will shutter that site. In addition, roughly 200 jobs were eliminated at the Mountaintop site. It also closed one of its fabs in Bucheon, South Korea.

In October, Fairchild announced results for the third quarter ended September 26, 2010. Fairchild reported third quarter sales of $414.4 million, up one percent from the prior quarter and 25 percent higher than the third quarter of 2009.

Fairchild reported third quarter net income of $35.8 million or $0.28 per diluted share compared to $43.8 million or $0.34 per diluted share in the prior quarter and $2.7 million or $0.02 per diluted share in the third quarter of 2009. Gross margin was 36.4 percent compared to 35 percent in the prior quarter and 26 percent in the quarter one year ago.

Mark LaPedus
EE Times

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