Posted on 09/29/2003 4:19:12 PM PDT by cp124
State-of-the-art facility expands back end manufacturing capabilities while reducing outsourcing costs
September 29, 2003 – Suzhou, China – Fairchild Semiconductor (NYSE: FCS), one of the largest global suppliers of high performance products that optimize system power in multiple end markets, today officially opened the first phase of its 800,000 square foot assembly and test facility and automated warehouse in Suzhou, China. This facility is a key element of the company’s global strategy to more than double sales in China by 2004, and the new factory will produce products for both the local China market and for export to the rest of Asia, Europe and the Americas.
“This state-of-the-art facility is a crucial element in supplying our customers with the right products at the right time for their next generation applications,” said Kirk Pond, Fairchild’s president, CEO and chairman of the Board. “We recognized China as a growing force in the global semiconductor market several years ago, both in consumption of IC’s and in the design and manufacture of electronic products, and moved quickly to position ourselves. I’m very pleased that the first completely new facility built by Fairchild is in China.”
Fairchild has solidified its focus on China by:
expanding alliances with key design houses to develop systems reference designs; increasing market penetration in the key high-growth market sectors; realigning product line resources to focus on China; launching leading edge products for target segments; strengthening the sales and marketing efforts locally with the ultimate establishment of eight offices in China; and establishing three of the company’s six Centers of Excellence in Greater China to assist customers with their power design requirements for consumer, ultra portable, cell phone and notebook applications.
According to World Semiconductor Trade Statistics (WSTS, October 2002), the market for IC consumption in China is expected to reach $28.7 billion by 2005, a compound annual growth rate of 25.5%. iSuppli states that between 2002 and 2006 over half of the total global increase in demand for semiconductors will come from China. The first phase of this project, comprised of 400,000 square feet of assembly / test and automated warehouse space, was completed in just over a year. More than 570 employees have been trained and are in place, currently shipping production volume to customers. Total employment is expected to reach 1,995 by 2005 and 3,500 upon completion of Phase 2. Fairchild expects to save as much as 30% on assembly and test costs with the new facility, when compared to purchasing outsourced assembly / test services.
With the new factory, Fairchild will reduce the amount of outsourced assembly and test production required, balance the company’s dependence on outside contractors, ensure more effective cost control, enhance production ramps for new products, strengthen the supply and logistic channel and provide needed assembly and test capacity.
“Our Suzhou team is to be congratulated for the outstanding rate of delivery they accomplished to complete phase one of this state-of-the-art facility,” said Pond. “The Suzhou plant will support our focus to provide industry-leading products that optimize system power for our global customers.”
The facility is located within the China-Singapore Suzhou Industrial Park (CSSIP) in Suzhou, Jiangsu Province, China. The China-Singapore Suzhou Industrial Park is one of China’s most successful industrial locations. Jiangsu Province is second only to Guangdong Province in terms of electronics production.
To learn more contact:
Corporate Communications: Fran Harrison 207-775-8576 fran.harrison@fairchildsemi.com Public Relations Firm: Barbara Ewen CHEN PR 781-466-8282 bewen@chenpr.com
Double the CEO's annual salary while cutting labor costs by 90% (not counting the annual bonus)
no worry of fair wages , retirement pensions, health insurance, OSHA, clean air or water .
and the American consumer will never notice the difference except the people who got laid off so the company can remain "competative in this Global Economy"
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