This is very strange, Fairchild is talking of closing two units at the same time they are talking of huge rise of 40% in the profits in the same financial year. May be the plants they are closing were completely nonoperational.
Closing two units. Is it a sudden decision or a planned one?? what will happen to the employees..will they be relocated or absorbed in other companies. I think whenever companies decide close down they must also think about employees and their families.
Isn't it possible to convert the smaller wafer size manufacturing facility to produce less critical and generic components? May be it can be sold to other companies who can manufacture generic components.
in general, the semiconductor industry is consolidating now and smaller manufacturing units are either closing down or getting acquired by other companies. Most of the big names are only interested in high-end manufacturing so for smaller companies, its either go fabless or consolidate.
I think that this small wafer size manufacturing units can be used for making generic components, and this can also help in bulk producing the generic components with minor modification enabling them to be used in current scenario. e.g. 8051 families of microcontrollers can be redesigned with usb stack. Same thing will be true for power electronics components as well.