LTX sending more manufacturing to Asia

May 22, 2007 – Test equipment provider LTX Corp. says that manufacturing outsourcing partner Jabil will shift work on LTX’s X-Series test systems from its Billerica, MA location to facilities in Penang, Malaysia. The transfer is already underway, the company says, and should be completed by August 2008.

An LTX spokesperson explained to WaferNEWS that since an initial partnership in 2001, Jabil Circuits has been doing manufacturing for all LTX products, doing initial work in Billerica, and once the products are ramped to volume shifting that work to Penang. The spokesperson noted that manufacturing for certain LTX legacy products will stay in Mass.

“LTX is taking the next step by leveraging Jabil’s global presence to bring the supply chain and manufacturing operations closer to many of our customers’ facilities,” said LTX president/CEO Dave Tacelli, in a statement.

“The close operating relationship between LTX and our Billerica and Penang facilities, coupled with Jabil’s proven success in the efficient transfer of knowledge, equipment and materials between facilities, will ensure a seamless transition for LTX and its customers,” stated Steve Borges, VP of business development for Jabil.

Back in June 2001, LTX said it was partnering with Jabil to build its Fusion test systems, transferring all assembly, final integration and test operations to Malaysia over a 12-15-month period, resulting in a 15% workforce reduction and about $12-$14 million in charges. Since Jabil already does manufacturing for LTX out of its Billerica, MA site, LTX won’t see any charges or workforce reduction, the company spokesperson explained, though it’s likely Jabil will shift some workers around based on the transfer.


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