Citing “significant damage” from the March 11 quake and its...
Citing “significant damage” from the March 11 quake and its aftershocks, Freescale Semiconductor said Wednesday it will not reopen its damaged six-inch wafer fab facility in Sendai, which shut down when the earthquake occurred March 11. The company estimated the…
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total charge associated with the closing at $102 million, with the final amount to be reported as part of a business reorganization to be detailed in its Q1 operations statement. A company spokesman said devices produced at the Sendai plant -- microcontrollers, analog ICs and sensors -- are used primarily in automotive applications. The decision to close the plant accelerated a previously disclosed plan to cease operations there by the end of this year (CED April 4 p4). The breakout of the charges associated with closing is approximately $50 million for “asset impairment,” $14 million for damaged inventory and $38 million in “separation costs,” the company said. Production from Sendai is being transferred to other Freescale facilities, mainly in Chandler, Ariz., and Austin, Texas, and to foundry partners, the spokesman said. The company said it’s providing ongoing assistance to affected Sendai employees and their families including shipments of food, water, clothing and other emergency supplies, continuous payment of salaries to all Sendai employees and formation of the Freescale Relief Foundation. The Sendai plant was Freescale’s only production facility in Japan. The company’s distribution center in Narita, outside of Tokyo, experienced minimal building damage and is operational, the spokesman said.