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Taiwanese fab closure hits Exar Q4 revenues

Wednesday 25 November 1998 00:00
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.
 

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