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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Ilaine who wrote (4223)	6/3/2001 12:03:07 PM
From: banzai11	Read Replies (1) \| Respond to of 74559

More positive economic news, @#$%@$%!! I think INTC will cut spending too after they warn again. ********* STMicro Cuts Its Capital Budget, Plans to Eliminate Jobs in Ottawa Dow Jones Newswires STMicroelectronics NV cut its forecast 2001 capital investments by 21% to $1.5 billion from $1.9 billion, and said it plans to transfer its Ottawa front-end wafer-fabrication production to other manufacturing facilities. The French-Italian chip maker said it revised its capital expenditure budget because of the continuing semiconductor-market slowdown, which has led to excess manufacturing capacity. The company said its budget still assures progress on its "advanced submicron production" projects. STMicro said its Ottawa plant has been operating well below capacity, and moving the production to larger, lower-cost facilities is expected to keep the company's products cost-competitive. STM said the move affects about 450 people, though some employees will be offered relocation to other sites. The company expects to complete the transfer of Ottawa front-end wafer-fabrication production in December, resulting in a second-quarter charge of about $30 million. STMicro said the Ottawa facility and manufacturing line, which it acquired last year through a joint-development and supply agreement, was the in-house silicon semiconductor production operation of Nortel Networks Corp. The company's transfer plans don't include the research-and-development capabilities, which will remain in Ottawa, and will continue to receive sufficient investments "to remain on the cutting edge of optical technology development."