March 24, 1998
Hitachi Semiconductor (America) Realigns Manufacturing to Adjust to Market Changes and Product Mix- Shift in Manufacturing Focus to Reduce Employment by Approximately 200 -In announcing the action, Kosei Nomiya, chief executive officer of Hitachi Semiconductor (America), and board director of Hitachi, Ltd. said, "Changes in our markets have been dramatic and have necessitated a change in our manufacturing focus in the Texas plant in order to improve the outlook for our operations. These market conditions have dictated that we shift our focus to higher margin semiconductor logic products." Michael Hill, vice president of operations at the plant, said, "This was a very difficult but necessary action. And we have taken a variety of steps to help our affected employees with substantial severance packages, outplacement services and health care coverage options. Our employment at the plant is expected to be in the range of 500 people following the restructuring." Like other major DRAM suppliers, Hitachi Semiconductor (America) has experienced substantial losses from the combination of a glut of DRAM chips on the market and the resulting steep erosion in their price. The company's restructuring will begin immediately with the objective of shifting production from DRAM to non-memory and other "application specific" and microprocessor/ microcontroller devices. By the end of 1998, Hitachi Semiconductor (America) plans for non-memory semiconductor manufacturing to comprise 40 percent of the company's production in Irving. Today, manufacturing of these customized microprocessors accounts for 18 percent of production. "We're committed to the viability of our plant, and that means aggressively addressing the realities of the marketplace. We are equally committed to taking care of our team members as they make this difficult transition," said Mr. Hill. As announced last year, Hitachi America, Ltd. completed the unification of its Semiconductor & I.C. Sales and Marketing Division in Brisbane, California with its Hitachi Semiconductor (America) Inc. manufacturing subsidiary to focus on its system product solutions business, including microprocessors and ASIC products. Hitachi Semiconductor (America) Inc., a subsidiary of Hitachi America, Ltd., manufactures and markets a wide range of semiconductors, including microcontrollers, application specific integrated circuits and other components. The Texas plant, which was established in 1978, is Hitachi's first full-process semiconductor fabrication, assembly and test facility outside Japan. Hitachi America, Ltd., a wholly owned subsidiary of Hitachi, Ltd., Japan, markets and manufactures a broad range of electronics, computer systems and products, and semiconductors, and provides industrial equipment and services throughout North America.
Outline of Hitachi Semiconductor (America) Inc.
Outline of Hitachi America, Ltd.
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