September 03, 2008

Cypress to shut down Fab 2

Cypress Semiconductor has decided to shut down Round Rock based Fab 2, the facility where it has produced semiconductors for more than 22 years. The shut down will result in the loss of more than 200 jobs...

The company informed the Workforce Commission that it will close the plant in four stages, eliminating 211 engineering, administrative and operator jobs. In the first stage, the company will cut 67 jobs between Oct. 27 and Nov. 11. Then it will cut 57 jobs between Nov. 10 and Nov. 23, followed by more job cuts between Dec. 8 and Dec. 21. The final 45 job reductions are planned to occur in early 2009.

Cypress said that the Round Rock plant used older manufacturing process technology to make less advanced chips.

"It is simply more cost-effective to shift manufacturing elsewhere than to retool Fab 2," said Shahin Sharifzadeh, the company's manufacturing vice president, last year.

One has to wonder if Cypress received any 'incentives' and how much Round Rock has benefited from them. As for me, good riddance Cypress. You're kind of a loser any way. While it hurts to let jobs go, hopefully Samsung or another company will pick them up. They seem to be doing well.

Posted by mcblogger at September 3, 2008 02:15 PM

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