SunEdison Semiconductor Limited, a supplier of semiconductor wafers to the global semiconductor device industry, today announced that it has initiated a plan to consolidate its manufacturing footprint to better match demands of the industry. The consolidation will consist of closing its Ipoh, Malaysia wafering plant by the end of 2016, and relocating the associated capacity to other plant sites. This action will affect approximately 650 employees at the Ipoh facility. The company does not expect its total capacity to change. By late 2016, with the closure of the Ipoh plant, the company’s global footprint will be consolidated from eight to seven plants.
The Ipoh plant produces 200mm semiconductor wafers. SunEdison Semiconductor will work closely with customers to complete the qualifications required and/or build adequate supply to support their needs. During the transition, SunEdison Semiconductor expects to continue to deliver products and service without disruption to their customers. Employees affected by the closure are being offered customary severance and benefits packages.
The company estimates that approximately $4 million to $6 million of severance expense will be incurred as a result of this action, of which approximately $2 million to $4 million is expected to be incurred in the third quarter of 2015 with the balance incurred over the next 12 to 16 months.