Philips Semiconductors Closing Albuquerque Plant

November 10, 2002 by Jeff Shepard

Philips Semiconductors (Sunnyvale, CA) announced plans to close its Albuquerque, NM, manufacturing plant by the end of the year, eliminating 600 jobs. The plant, which opened 20 years ago, has been reducing its work force steadily for more than a year. It laid off 70 workers in September and 250 in June 2001. Philips is shutting the plant's doors because it wants to decrease its overall wafer-making capacity to meet lower demand. The facility makes chips for cell phones and pagers, as well as for the automotive industry.

"The industry situation we find ourselves in is the worst downturn the industry has ever experienced," stated Peter Yates, executive vice president of global manufacturing operations for Philips. "All companies, all manufacturing capacity, is affected around the world."

The company has no plans to reopen the plant in the future, and Philips will sell the property. No jobs will be lost immediately. Philips will keep the plant's core work force on until the third quarter of next year, when it will begin shutting down and transferring operations to other plants in North America, Asia and Europe.