French Freescale plant to be shut down: 1,700 jobs at risk
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US semiconductor manufacturer Freescale intends to close its French plant, which employs some 1,700 people, by the end of 2011. The group also plans to shut down one of its Japanese plants, in an effort to remain "competitive".
AFP - US semiconductor manufacturer Freescale announced on Wednesday that it was closing plants in France and Japan.
The Austin, Texas-based Freescale said that "in order to remain competitive and maintain an efficient manufacturing footprint" it was closing facilities in Toulouse, France, and another in Sendai, Japan, by the end of 2011.
The privately held company said in a statement that the moves resulted from its decision to stop manufacturing 150mm chips.
Freescale, which also recently announced plans to abandon the cellular handset business, said the closures should result in severance costs of 200 million dollars and eventual annual cost savings of 100 million dollars.
Freescale reported net earnings of 1.76 billion dollars in the first quarter of the year, accomplished mainly through the one-time elimination of long-term debt.
Freescale designs and makes semiconductors for the automotive, consumer and wireless industries.
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