Ruminations on the electronics industry from David Manners, Senior Components Editor on Electronics Weekly.
ST cutting production at Crolles and Catania
STMicroelectronics has announced production stoppages at manufacturing sites at Crolles and Catania according to the French union UNSA and later today may announce a new business model for the company.
The eight inch plant at Crolles will have seven days of partial unemployment and will stop production from 24 December 2012 to 2 January 2013.
The 12 inch plant at Crolles will have ten days of partial unemployment by rotation from 29 September to 21 December and will stop production from December 21 to January 2, 2013.
In Catania, the eight inch fab will close for 25 days, the six inch fab will close for 13 days and the LIP research department and the EWS test line will be stopped for 6 days.
ST told EW: “We announced some measures on some sites (Crolles in France and Catania in Italy) which are due to the continued worsening of the macro-economic context, to its consequences on the semiconductor market and to company-specific issues related to the former largest major customer, the latter creating a specific impact on some fabs. Crolles 200mm: 7 days of part time unemployment with a stop of the industrial activity at the end of December (24 to 31). Crolles 300mm: initial plan under discussion and canâ€™t confirm the information on the UNSA site at this stage; Catania : By rotation25 days for the 8 inch fab; 15 days for the 6 inch.”
It is expected that ST CEO Carlo Bozotti will announce a global re-organisation this week which may change the company’s business model.
UNSA goes on to say that the cost-savings, which fall on the lowest paid workers, hardly match the pay rises of the ST elite.
The UNSA web-site states: “Les augmentations de salaire des 19 dirigeants de ST qui en 5 ans ont vu leur salaire multiplié par pres de quatre” – referring to the pay of ST’s 19 top people which has grown by almost 4x in the last 5 years representing a total of €39m.
ST declined to comment on this particualr part of the UNSA statement.
The UNSA site goes on to say there is open hostility between certain ST executives and some union representatives..