National Semiconductor has announced plans to close its assembly and test plant in Toa Payoh, Singapore. The closure is consistent with National’s ongoing program to maximize resources and support for its analog businesses.
Following National's March 10, 2005, announcement to seek a buyer for its Singapore plant, the company has now decided to accelerate its cost savings by closing the plant and consolidating its production volume into National's two other assembly and test plants in Melaka, Malaysia, and Suzhou, China.
A majority of the equipment that is currently in Singapore will be transferred to the other assembly and test plants and used to support ongoing products and customers. However, the closure will affect about 950 employees, including professional staff, technicians and operators. The management team in Singapore will work with local government agencies and other employers on job placement opportunities for affected employees.
In connection with the shutdown, the company currently estimates that it will incur charges in the range of $27 million to $30 million during the first quarter of fiscal 2006, primarily for severances. The majority of the activities associated with the closure, including equipment transfers to other plants, are expected to take place over nine to 12 months. The company expects to eventually achieve quarterly cost savings of $4 million to $6 million from this action
