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Technology Stocks : Applied Materials No-Politics Thread (AMAT) -- Ignore unavailable to you. Want to Upgrade?

To: Proud_Infidel who wrote (7703)	10/23/2003 1:09:01 PM
From: Proud_Infidel	Respond to of 25522

STMicro to 'downsize' Texas fab in restructuring Silicon Strategies 10/23/2003, 12:40 PM ET GENEVA -- STMicroelectronics Inc. here on Wednesday disclosed plans to "downsize" its 6-inch fab in Texas, as part of a major effort to cut its chip-production costs. The Geneva-based chip maker plans to "to downsize by approximately one-half its 6-in. wafer fab in Carrollton, Texas." The fab is an older 0.45-micron, BiCMOS plant, which makes memory devices, microcontrollers and other products, according to a spokesman for the company. The fab is "not being shut down," the spokesman told Silicon Strategies. The disclosure was actually made in STMicro's results for the third quarter, which were released on Wednesday (see October 23 story). The move to downsize its fab in Texas is part of a major restructuring effort to cut costs. Originally announced in July, STMicro's restructuring plan called for the migration of approximately 60 percent of the company's European and U.S. 6-inch wafer production either to finer geometry 8-inch wafer fabs or to its 6-inch wafer fab in Singapore. Then, in September, STMicro was more specific about its plans. The company said it would shut down its 6-inch fab in Rennes, and will separately migrate a plant in Rousset from 6- to 8-inch capacity (see September 3 story). When STMicro announced that plan, it did not specifically disclose the downsizing within its fab in Texas, it was noted. "We never mentioned Carrollton specifically," the spokesman said.