Taiwanese fab closure hits Exar Q4 revenues
Tom Foremski Mixed-signal IC manufacturer, Exar, is smarting after
the sudden closure of its Taiwan-based fab foundry supplier. Exar
expects the closure to significantly affect its revenues for the
fiscal fourth quarter ending March 31, 1999. "Without any prior
notice to Exar, the fab was closed with wafers in process in the
line. Our analysis indicates that this action could potentially
reduce our fiscal fourth quarter revenue by about $2m, and reduce
revenue by about $1m per quarter in fiscal year 2000," said Ron
Guire, Exar's chief financial officer. "This fab manufactured
several of our older custom products. Since these products were on
a last time buy status and require very specialised mixed-signal
processes, we do not anticipate a satisfactory transfer of the
products to another foundry," Guire said. Exar is considering
taking legal action since the foundry had accepted orders and had
given delivery dates.