ON Semiconductor to cut work force, transfer some operations to US

June 30, 2005 – ON Semiconductor has announced its plan to transfer wafer-fab operations from its Site 2 facility in Seremban, Malaysia, to its facility in Phoenix by the end of 2006, resulting in the loss of ~80 jobs. As a result, the company expects to save a total of ~$25 to $30 million over the next five years, beginning in the 3Q06.

The discontinuation of wafer-fab operations in the 20,000 sq ft of manufacturing space in the Site 2 facility eliminates ~80 jobs. The reduction in force is part of the company’s ongoing strategy to improve operational efficiencies and to better position itself for growth. The company has realigned its resources throughout the organization, and as a result, is eliminating ~70 additional jobs.

Transferring the wafer production from Site 2 to Phoenix should enable the company to increase its factory utilization while reducing the number of wafer production sites in its global manufacturing network.

The Phoenix wafer fab, with its 60,000 sq ft of manufacturing floor space, is capable of increasing its manufacturing output without incurring a significant increase in cost or headcount.

The company will maintain its 281,000 sq ft assembly-and-test operation at Site 1 in Seremban, one of the company’s largest manufacturing facilities.


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