Factiva

D&B Report
Financial Snapshot
Financial Snapshot plus Profile
Comparison Report
Analyst Report:
Analyst Report:
Analyst Report:
Company Quick Search
Quote
News
Add to Company List
Company Data from Reuters
Details
Chart
There is no related information for this company.


Retrieving article(s)...

Article 34



Money

National Semiconductor to close Toa Payoh plant

Fiona Chan
445 words
15 July 2005
Straits Times
English
(c) 2005 Singapore Press Holdings Limited

Cost-cutting move, a reversal of earlier plans, will result in a loss of 950 jobs

IN A reversal of earlier plans, United States-based National Semiconductor said yesterday that it will after all close its only chip assembly plant here - a cost-cutting move that will axe 950 jobs.

The company, which makes chips used in electronic devices such as mobile phones and iPods, is closing the Toa Payoh plant here after failing to receive satisfactory bids since putting it up for sale in March.

At that time, the company had given the assurance that the chip-testing and assembly plant would not be shut down even if a suitable buyer could not be found.

But human resource director Tan Tee Huat said yesterday that National Semiconductor had 'reviewed several offers, but none came close to the company's expectations'.

He added: 'At that point of time when the sale announcement was made, the focus was to get a good sale.

'Since the offer did not meet our expectations, the decision is to close (the plant).'

The plant's focus on digital chip production may have been a factor in its closure, as National Semiconductor has been moving towards more profitable analogue chips and was selling assets and businesses that were not in line with this.

The plant closure comes on the heels of other electronics companies moving jobs out of Singapore to lower-cost countries such as China.

In March, hard-disk manufacturer Maxtor announced that it would cut up to 5,500 jobs here.

The shutdown, which will take place over the next 15 months, is estimated to cost National Semiconductor $27 million to $30 million this quarter.

Cost savings from the move are expected to reach up to $6 million a quarter.

Most of the equipment used in the plant will be transferred to the company's other assembly and test plants in Malaysia and China.

Employees here are being offered severance packages of one month's pay for every year of service.

The company is also working with the Economic Development Board (EDB) and the Ministry of Manpower to find new jobs.

An upbeat director of the EDB's electronics division, Mr Lim Swee Nian, noted: 'There are currently 14 wafer fabrication facilities, 19 assembly and test operations and over 40 IC design centres in Singapore and we are also aware of several new expansion plans within this industry in the next few months.

'Given the vibrancy and buzz of activities, we are confident there is a strong demand for skilled talent in this industry.'

fiochan@sph.com.sg

Document STIMES0020050714e17f0001s


More Like This