Latest response! Big Semiconductor plants are rumored to be shut down for three weeks

On March 6, foreign media reported that high tower semiconductor plans to suspend most of its Newport Beach operations for three weeks, in a move that will put nearly 700 employees on leave amid a slowdown in the industry. Hightower confirmed it would close most of its operations from April 1 to 7 and plans to close more from July 1 to 7 and October 7 to 13.

On March 7th, according to the scidev.net daily, high tower semiconductor issued a statement saying that this is a planned normal maintenance and we will still fulfill our commitment to deliver wafers as planned. Tape out work will continue without interruption.

According to foreign media reports, high tower semiconductor mainly through the adjustment of staff leave to maintain the normal operation of the plant. Of those, 699 employees at the Newport Beach plant will be required to use their accumulated vacation time during the shutdown, while others in the safety, facility management and customer support departments will continue to work, but a replacement week of rest must be taken by June 15. Employees who do not have vacation time available during those weeks can apply for unemployment during that time. Tower did not disclose the total number of employees at its Newport Beach plant.

In a statement to employees and state employment development, Hightower said orders at its Jamboree Road 4321 plant were declining as customers continued to process inventory. A three-week shutdown is planned to avoid a longer shutdown, which could include layoffs. Workers affected include engineering technicians, financial planners, manufacturing workers and utility operators.

The lockout comes just seven months after Intel scrapped its $5.4 billion bid for the chipmaker.

In August, the 2023 company announced it was pulling the plug on its bid for Hightower because it could not get regulatory approval in time. Under the terms of the merger agreement and its termination, Intel will pay tower a termination fee of $353 million. But in September, the two companies reached a new contract under which Intel will provide contract manufacturing services and Hightower will use Intel's manufacturing plant in New Mexico.

However, Hightower is not the first company to announce a shutdown plan in the near future. In February, Microchip also announced that it would suspend work for two weeks in March and June. Ganesh Moorthy, president and chief executive officer, said: “We are cautious about near-term demand given the weak macro environment and continued customer action to reduce inventories. As a result, we are taking steps to closely manage inventory levels. As a result, we are planning a two-week shutdown at our large wafer manufacturing facilities in the march and June quarters and a reduction in activity at other plants.”

Judging from the recent operations of some large semiconductor factories that have stopped production, customers are still digesting the large number of chips that were stockpiled earlier due to the shortage of chips. However, since the end of last year, the craze brought by AI and the slow pick-up in consumer electronics demand, may Be a manufacturer from the bottom of the driving force.

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