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Fairchild Semiconductor closing Utah plant

Published: Monday, Aug. 25 2014 5:24 p.m. MDT

Updated: Monday, Aug. 25 2014 5:24 p.m. MDT

WEST JORDAN — Multinational chipmaker Fairchild Semiconductor on Monday announced it would make dramatic cuts to two of its major supply lines, including shuttering its West Jordan manufacturing facility.

The company will also eliminate 1,350 jobs in the U.S. and Asia.

Headquartered in San Jose, California, Fairchild Semiconductor produces integrated circuits, signal processors, controllers, transistors and other technology solutions for various industries internationally. Worldwide, the company employs approximately 9,000 workers.

The Deseret News attempted to contact Fairchild to inquire about how many Utah employees would be impacted but received no response.

In a statement, the company said it will eliminate its internal 5-inch wafer fabrication lines and significantly reduce its 6-inch wafer-making lines next year.

The cuts will result in the closure of the firm’s manufacturing and assembly facilities in West Jordan and Penang, Malaysia, as well as the remaining 5-inch wafer fabrication lines in Bucheon, South Korea.

The realignment is part of Fairchild's ongoing plan to enhance manufacturing capabilities, improve product quality, and lower costs resulting in greater supply chain flexibility and responsiveness for our customers, the statement said.

The closures are expected to occur in the second to fourth quarters of 2015.

"The realignment we are announcing today will maximize the utilization of 8-inch factories and reduce the complexity of our manufacturing footprint, while creating the flexibility to support ongoing customer demand through a greater use of external manufacturing sources,” said Fairchild Chairman and CEO Mark Thompson.

The company will continue operating fabrication lines in South Portland, Maine, Mountain Top, Pennsylvania, and the 6- and 8-inch lines in Bucheon, South Korea, as well as operating assembly and test facilities in Cebu, Philippines, and Suzhou, China, he added.

Fairchild officials said the closures are expected to save the firm $45 million to $55 million annually. Shares of Fairchild fell 10 cents to $16.92 in midday trading. Meanwhile, the stock had gained 36 percent over the past 12 months.

E-mail: jlee@deseretnews.com

Twitter: JasenLee1

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