STMicroelectronics to Close Phoenix Fab

Semiconductor manufacturer STMicroelectronics revealed Tuesday that it plans to deconsolidate its flash memory business by cutting 4,000 jobs and closing three of its manufacturing facilities. Citing a need to improve its stock profile as one of the reasons for the closings, the company said it will take two to three years to wind down operations at its 8-inch wafer fab in Phoenix, Arizona, its 6-inch wafer plant in Carrollton, Texas, and its back-end packaging and test facility in Ain Sebaa, Morocco. STMicroelectronics said the closings will save the company some $150 million per year. The Geneva, Switzerland-based firm explained that its Phoenix plant was too small and dated to justify upgrading and instead opted to shift its capacity to plants or subcontractors in Asia and Europe.