7/24/2002 - Atmel Corporation today announced the closure of its manufacturing facility in Irving Texas, effective immediately. The facility, purchased in 2000 from Hitachi, had employed approximately 300 people at the time of its closure. The move allows Atmel to consolidate its manufacturing activity and reduce costs significantly. The facility will be placed for sale by Atmel.
George Perlegos, Atmel's CEO, stated, " While we regret the necessity to close our Irving facility, we are committed to completing our restructuring program, which includes a reduction in manufacturing expenses. In the two years we have owned the facility, we put in place equipment and people to support an increase in customer demand and advanced cost-effective technology. However, given the current business environment, combined with today's advanced 0.18 and 0.13 micron processes we simply do not need as many wafers to manufacture the same number of semiconductor chips. Therefore, even with the recovering demand that we expect, our remaining facilities will serve us well. Importantly, reducing expenses now will speed our return to profitability. And we will still be well positioned with capacity to support the upturn when it arrives."
The plant closure is expected to save Atmel approximately $9 million per quarter in on-going expenses, and potentially an additional $6 million per quarter in future depreciation. Additionally, while the company's balance sheet is healthy, sale of assets will strengthen it.
Founded in 1984, Atmel Corporation is headquartered in San Jose, California with manufacturing facilities in North America and Europe. Atmel designs, manufactures and markets worldwide, advanced logic, mixed-signal, nonvolatile memory and RF semiconductors. Atmel is also a leading provider of system-level integration semiconductor solutions using CMOS, BiCMOS, SiGe, and high- voltage BCDMOS process technologies.
© Atmel Corporation 2002. All rights reserved. Atmel, the Atmel logo and combinations thereof are registered trademarks, and others contained herein are trademarks, of Atmel Corporation. Other terms and product names in this document may be the trademarks of others.
B. Jeffrey Katz, Vice President of Marketing, +1 408-436-4205 Jkatz@atmel.com
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