Fairchild Semiconductor to expand manufacturing, warehousing facilities in China

Dec. 4, 2001 – South Portland, ME – Fairchild Semiconductor International has plans to construct a new manufacturing and warehouse facility in China.

The factory will be an assembly and test facility for a broad range of logic, discrete, and analog products, the company said. The proposed 800,000-square-foot plant will be built in several phases in the China-Singapore Suzhou Industrial Park (CSSIP) in Suzhou, Jiangsu Province, China. Key to the company’s global strategy, the new factory will produce products for both the local China market and for export to the rest of Asia, Europe, and the Americas.

The first phase is planned to start in early 2002 with the construction of a $10 million, 120,000-square-foot, backend facility. A 280,000-square-foot extension will follow prior to the final development of another 400,000-square-feet of factory space. The total investment, including land purchase, construction costs, and tooling, is expected to be $200 million over the next five years.

The new facility will provide a platform for global growth in the sectors targeted by Fairchild and will be used initially to manufacture the company’s latest power devices. Additionally, a number of similar products from other Fairchild groups will be consolidated for manufacturing at the site.

“As a cornerstone of our growth strategy, we plan to more than double sales in China by 2004. This plant in Suzhou will play a vital role in supplying our customers with multi-market semiconductors that meet the needs of next generation applications,” said Kirk Pond, president, CEO and chairman of Fairchild Semiconductor. “The Suzhou plant will be the first factory completely constructed by Fairchild since becoming an independent entity four years ago.”

Fairchild currently outsources more than 50% of its assembly and test production. To support Fairchild’s projected growth, the new factory in Suzhou will balance the company’s dependence on outside contractors, ensure more effective cost control, enhance production ramps for new products, strengthen the company’s supply logistics and provide needed assembly and test capacity.

“This assembly and test facility is just the latest manifestation of Fairchild’s commitment to the China market. We have many key customers in China, served by our regional sales headquarters in Hong Kong, our representatives in Shanghai, and Shenzhen, and our technical support group,” said Pond. “Fairchild made a commitment in 1999 that China would be a cornerstone of our global business. With the current worldwide economic slowdown, Fairchild is working with our partners at the China-Singapore Suzhou Industrial Park to develop the new site in phases to ensure our progress is consistent with market demands.

“Planning construction on a new manufacturing facility in the present economic climate is a clear indication of our intention to remain at the forefront of the semiconductor industry,” continued Pond.


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