Sipex closes doors to Milpitas fab

October 4, 2006 – Sipex has officially closed its wafer fab in Milpitas, CA, with product manufacturing from the site having been transferred to China and Taiwan.

Last year Sipex said it would close the wafer fab and send its analog IC product manufacturing along with 6-in. equipment to Chinese partner Hangzhou Silan Microelectronics Co. Ltd./Hangzhou Silan Integrated Circuit Co. Ltd. By March of this year, “excellent yielding material” had been produced from two process technologies, the companies said, with all process qualifications expected to be completed by year’s end.

“This fabless transition is critical to making Sipex profitable,” stated Ralph Schmitt, CEO of Sipex. Company CFO Ray Wallin adding that there will be an undisclosed one-time charge for closing the Milpitas facility, but the financial impact of the transition will take a few more quarters in order to sell off higher-cost inventory and work-in-progress.


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