SAN JOSE, Calif. - Seeking to reduce its costs, Fairchild Semiconductor will be closing the 6-inch manufacturing line in its South Portland, Maine manufacturing facility and transferring production to its 8-inch fab in the same site.
The restructuring is expected to eliminate approximately 120 jobs at the facility over a nine-month period. This move was expected.
The South Portland site manufactures products including analog switches, offline power switches, power factor controllers and interface devices for end applications such as mobile phones, digital cameras, MP3 players, DVD players, games, notebook computers and other highly integrated compact devices.
The company employs approximately 800 people in Maine.
Fairchild provides a standard benefit package for employees impacted by this restructuring, including outplacement services based on the individual needs and a severance package based on their length of service. The benefit package includes: severance pay ranging from three weeks to a year; full medical benefits for between three months and a year; and continuing full dental and vision coverage for a month.
In October, Fairchild announced results for the third quarter ended Sept. 26, 2010. Fairchild reported third quarter sales of $414.4 million, up one percent from the prior quarter and 25 percent higher than the third quarter of 2009.
Fairchild reported third quarter net income of $35.8 million or $0.28 per diluted share compared to $43.8 million or $0.34 per diluted share in the prior quarter and $2.7 million or $0.02 per diluted share in the third quarter of 2009. Gross margin was 36.4 percent compared to 35.0 percent in the prior quarter and 26.0 percent in the quarter one year ago.