Analog Devices To Consolidate Manufacturing Activities, Close California Wafer Fab

Norwood, MA -- Analog Devices, Inc. (ADI) announced plans to consolidate its wafer fabrication operations. As a result, ADI plans to close its California wafer fab operations and transfer production to its two largest facilities located in Massachusetts and Ireland. When completed by the end of fiscal year 2006, the consolidation is estimated to result in savings of approximately $45 million per year.

"Our California-based manufacturing operation has been one of ADI's most productive organizations, due largely to the dedication and talent of the staff. However, because of the size and limited expansion potential in Sunnyvale, we have decided to focus our investments in our other facilities," said Jerald G. Fishman, president and CEO of ADI.

"By focusing our capital investments in our largest and most advanced facilities, we expect to not only improve the cost effectiveness, but also expand the capacity of our global manufacturing infrastructure to support our long-term growth objectives," said Fishman. "Our new global manufacturing infrastructure will allow us to increase our investments in value-enhancing analog process technologies while simultaneously lowering our manufacturing costs. The new infrastructure will still allow us to double our global wafer production capacity with relatively small increases in capital equipment spending."

ADI has asked the production teams in Sunnyvale and Santa Clara, CA, to stay on with the company for the next year to assure a successful migration of the products to their new manufacturing locations. ADI expects the teams will complete the transfer by the end of fiscal 2006.

SOURCE: Analog Devices