Original URL: http://www.theregister.co.uk/2007/07/11/st_shutters/

ST Micro pulls plug on three chip plants

Six inches just ain't enough these days

By Joe Fay

Posted in Hardware, 11th July 2007 13:56 GMT

ST Microelectronics is shuttering three chip plants as part of its effort to ditch aging 6 inch wafer factories and other old production lines.

The Swiss-based chip maker is closing its 6 inch wafer fab in Carrollton, Texas, an 8 inch fab in Phoenix Arizona, and a packaging and test plant in Ain Sebaa, Morocco. It has already shifted most of its 6 inch production to Singapore.

The Phoenix plant is relatively small, ST Micro said, and the firm can’t be bothered upgrading into the 21st century, meaning its capacity will be shifted to other plants, or contractors. The same applies to the Ain Sebaa plant, with the firm upgrading its Bouskoura plant instead.

STM said the changes would affect 4,000 employees, most of which will be offered transfers or “transition-based incentives”.

On the plus – for STM anyway – the rationalization will save the company around $150m per year.®