Mitel to review Lincoln chip fab

Mitel to review Lincoln chip fab
Richard Wilson Mitel Semiconductor will sell one of the three UK semiconductor fabs it acquired when it bought GEC-Plessey Semiconductor, if it cannot be run profitably. Mitel, which found significant under-utilisation of capacity in some of the former GPS fabs at Swindon, Roborough and Lincoln, is reviewing the future of the Lincoln facility. According to Francois Cordeau, general manager of Mitel Semiconductor, the power semiconductor lines at Lincoln “are not an obvious fit with our business”. The employees have been told that Mitel is undertaking a strategic review of the Lincoln site. “If we cannot make the business profitable for a long time then we will consider divesting,” added Cordeau, who has moved from Canada to the firm’s new UK headquarters in Swindon. Despite finding under-utilisation of capacity at the Roborough plant, Cordeau insists that the Canadian company will “maintain and invest in” the two other UK fabs, which house the 0.35?m CMOS Asic and bipolar lines. However, he did say that his next task was to find foundry work for up to 25 per cent of Roborough’s capacity. Cordeau, who says the $225m Mitel paid for GPS in February, was “a reasonable price”, confirmed that there were no plans to move large numbers of UK designers over to Canada. “Groups of around ten engineers are involved in technology transfer programmes,” he added. Mitel Semiconductor has around 2,000 employees in the UK. GPS has doubled Mitel’s annual chip sales to $500m.


Leave a Reply

Your email address will not be published. Required fields are marked *

*