October 20, 2005 – Analog Devices Inc., Norwood, MA, is consolidating wafer fabrication operations in Sunnyvale and Santa Clara, CA, to its larger facilities in MA and Ireland, where the company works on more advanced process technologies.

The move will cost $50 million over the next twelve months ($20M recorded in 4Q05), but save about $45 million/year when the transition is completed by the end of FY06. President and CEO Jerald Fishman said he still expects the company will be able to double global wafer production capacity through “relatively small increases in capital equipment spending.”

The news comes as ADI projects better-than-expected fiscal 4Q05 revenue growth of 6% and gross margins slightly above 3Q05’s 58.1% margins, and said is repatriating $1.055 billion in accumulated foreign earnings (with a $49 million tax charge.)