SAN FRANCISCOAnalog mixed-signal semiconductor vendor Microsemi Corp. plans to close its manufacturing facility in Scottsdale, Ariz., by April 2011, eliminating an undisclosed number of jobs, the company said Wednesday (Oct. 28).
Microsemi (Irvine, Calif.) said the closure is part of an ongoing consolidation effort and aim to reduce inventory levels to improve its overall cost structure. Microsemi said it expects the closure to save the company $20 million to $25 million per year, once the consolidation is completed in 18 months.
The Scottsdale fab is an older fab using mature process technology, predominately 2- and 3-inch wafers, according to Rob Adams, vice president of corporate development at Microsemi. The company is expected to provide more details about the fab closure, including the number of jobs that will be eliminated as a result, when it issues its quarterly earnings in November, Adams said.
Microsemi said it expects to record one-time charges for restructuring and other reserves of between $24 million and $26 million for severance and related benefits, lease termination and facility closure costs. Additional consolidation costs of $3 million may be incurred over the closure period, the company said.
The Scottsdale fab's remaining product lines will be transferred to other Microsemi facilities, similar to other transfers that have occurred to date, Microsemi said.