Nov. 11, 2002-Amsterdam, Netherlands–Royal Philips Electronics announced plans for the phased closure of its semiconductor fabrication operation in Albuquerque, New Mexico, at the end of 2003.
The announcement follows Philips’ stated intention in September to reduce manufacturing capacity at Philips Semiconductors, and will be part of earlier announced restructuring plans for the fourth quarter of this year. The closure will lower excess capacity and fixed costs, in order to reduce the structural break-even level and better adjust capacity in line with demand.
The core production team will remain in place into 3Q03, at which time manufacturing will be relocated to other Philips sites in North America, Asia, and Europe. Meanwhile, the fab’s work force of approximately 600 will continue to manufacture advanced semiconductors for Philips customers worldwide.