Feeds

Cirrus bales out of IBM and Lucent chip joint ventures

Plans to cut wafer fab capacity by 70 per cent

  • alert
  • submit to reddit

Internet Security Threat Report 2014

A couple of years back the then management of Cirrus Logic told The Register that chip fab capacity was going to be tight, 'fabless' semiconductor firms would therefore be in trouble and so Cirrus was going to do a deal with IBM to secure capacity, and therefore prosper. Oops. The boys who made this unfortunate strategic decision are no longer with the company, and Cirrus yesterday moved onto the next stage of its long march back, with the announcement of 500 job losses and the proposed reduction of its wafer fab capacity by 70 per cent. It's talking to IBM to reduce its 48 per cent stake in the Micrus joint manufacturing venture in East Fishkill, and is trying to sell its 40 per cent share of Cirent Semiconductor to its partner there, Lucent. Cirrus says it expects to take a charge of up to $500 million, and that it is trying to eliminate exposure to charges related to under-utilisation of the two fab plants. So basically, an earlier cunning plan to acquire enough capacity to strengthen its position against fabless rivals turned into a nightmare where Cirrus had to continually find things to chuck into the maw of its ever-hungry fabbing capacity. IBM and Lucent may be in a better position to get contracts into the plant (don't count on it in IBM's case), but don't expect Cirrus to make a bundle out of shedding its stakes in them. ® Click for more stories.

Providing a secure and efficient Helpdesk

More from The Register

next story
Scrapping the Human Rights Act: What about privacy and freedom of expression?
Justice minister's attack to destroy ability to challenge state
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Hey Brit taxpayers. You just spent £4m on Central London ‘innovation playground’
Catapult me a Mojito, I feel an Digital Innovation coming on
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
EU to accuse Ireland of giving Apple an overly peachy tax deal – report
Probe expected to say single-digit rate was unlawful
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
EU probes Google’s Android omerta again: Talk now, or else
Spill those Android secrets, or we’ll fine you
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.