Product category: Intellectual Property Cores
News Release from: LSI Europe
Edited by the Electronicstalk Editorial Team on 27 July 2007
LSI to shed IC
assembly and test operations
Move is expected to achieve greater cost efficiencies through the adoption of a variable cost structure and to provide for scalable capacity without additional capital investment
LSI Corp is to switch worldwide assembly and testing of its semiconductor and storage systems products to contract manufacturers. The initiative is expected to achieve greater cost efficiencies through the adoption of a variable cost structure and to provide for scalable capacity without additional capital investment.
This article was originally published on Electronicstalk on 27 July 2007 at 8.00am (UK)
Related stories
LSI to shed consumer products business
Magnum Semiconductor is to acquire the LSI consumer products business, leaving LSI to focus its investments on its storage, networking and mobility market segments
Modem chipsets embed flexible communications
An all-new line of embedded modem products includes a pin-compatible family of data and fax modem chipsets and a single package monolithic data access arrangement
The initiative is part of a previously announced three-phase business acceleration plan adopted by LSI following its merger with Agere Systems on 2nd April 2007.
In connection with this initiative, LSI has signed a definitive agreement to sell its semiconductor assembly and test operations in Pathumthani, Thailand to Stats ChipPac for approximately US $100 million.
The Thailand facility consists of approximately 41,000m2 of floor space and employs approximately 1100 people.
Further reading
Comms processors use carrier-class technology
New generation of advanced communication processors will enable network equipment designers to provide high-bandwidth and real-time services
LSI releases sluggish Q1 results
Chip maker's first quarter results show reduced revenue compared with last year's figures
Under the terms of the agreement, Stats ChipPac will offer employment to substantially all of the LSI manufacturing employees based at the site, with the remaining nonmanufacturing workforce expected to continue their employment with LSI.
Stats ChipPac and LSI will also enter into additional agreements, including a multi-year wafer assembly and test agreement and a transition services agreement.
The transaction is expected to close within 90 days, subject to the satisfaction of customary closing conditions and regulatory approvals.
LSI also intends to move semiconductor and storage systems assembly and test operations performed at its facilities in Singapore and Wichita, Kansas to current contract manufacturing partners.
The transition of these operations is expected to be completed in the first half of 2008.
As part of the above actions, LSI will eliminate approximately 2100 production positions worldwide.
The transition is expected to reduce annual capital expenditures by US $20 to $25 million beginning in 2008 and to provide a long-term positive effect on gross margins.
Abhi Talwalkar, LSI President and CEO, says: 'As a result of the steps we are taking today, LSI will be well positioned to leverage the worldwide contract manufacturing ecosystem to further reduce our costs and improve our gross margins over time'.
'Additionally, we anticipate significant benefits from additional sourcing options and worldwide fulfilment capabilities'.
LSI is continuing to maintain its interest in Silicon Manufacturing Partners, its integrated circuit wafer manufacturing facility in Singapore, which is jointly owned with Chartered Semiconductor Manufacturing.
• LSI Europe: contact details and other news
• Email this article to a colleague
• Register for the free Electronicstalk email newsletter
• NEW
• Electronicstalk Home Page
Related Business News
MathStar, Inc. Announces High Definition MPEG-2...
...Encoder IP Core for the Arrix(TM) FPOA. MathStar, Inc. , a fabless semiconductor company specializing in high-performance programmable logic, announced today the availability of the company's high definition MPEG-2 Encoder IP Core for the Arrix field programmable object array .
Cast Selects Avery Design Systems For...
...Pci Express Verification Ip. Semiconductor intellectual property provider CAST, Inc. today announced that it has begun using the PCI-Xactor test environment from Avery Design Systems to verify its current and future PCI Express IP cores.
Vsia Announces Release Of Qip Metric...
...Now Publicly Available With Hard Ip Extension. The VSI Alliance , the leading IP standards body for the electronics industry, today announced the Quality IP Metric version 3.0, which includes the hard IP extension, is now publicly available.
Gda Technologies Selected By Renesas Technology...
...For Pci Express To Amba Axi Bridge. Gda Technologies, Inc., a fast growing supplier of Intellectual Property and Electronic Design Services , today announced that Renesas Technology Corp., a leading semiconductor company, has selected GDA for development of a PCIE 2 AMBA AXI Bridge to be
System management tool starts at $1.20
Actel has introduced a new reference design for embedded applications that enables intelligent system and power management implementations starting at $1.20.
Search the Pro-Talk network of sites
