STMicro cuts 2001 budget
Warns of wafer plant closure
STMicroelectronics has cut its budget for the year, while warning it will shut its wafer plant in Ottawa.
The French-Italian company said it would reduce its capital spending plans to $1.5 billion from $1.9 billion due to slowing demand in the chip market.
The Ottawa fab is expected to shut, with its production moved to other plants, by December. This will result in a one-off $30 million charge in the second quarter.
STMicroelectronics bought the Ottawa fab, which employs around 450 staff, from Nortel Networks last year. ®