In the investor day 2024 presentation Andy takes a question and remarks at time 3:09:52, that NXP 200mm manufacturing will be transferred to the VSMC 300mm venture in Malaysia within 10 years. No factories or lines will be maintained for redundancy. He remarks "we are moving to geographic resilient locations". No details on the plan yet for shuttering the 200mm factories. Anyone have details?
9 replies (most recent on top)
Have there been any more updates on this? Any details on estimated closing dates of the U.S fabs (Chandler, Austin)?
Just use TSMC like other major semiconductor companies. Building own fab increases cap-ex and wastes time and resources.
Many new 200 mm fabs are being built in America. Don't understand the reasoning to shut down the ones they have. Why not run both overseas and in the USA? Many products still can use chips off a 200. 300 thicker and overkill for things like sensors.
Gossip going around is Chandler to shutdown first end 2026, then Austin in 2028. Unknown regarding Nijmegen.
It's called Globalization. As costs increase in manufacturing, the only factor that can be controlled is labor then it's time to move to cheaper countries.. Equipment cost and real estate are fixed cost, you have no way to adjust those factors so you are left with offshoring to a country with lower labor cost.
NXP still has not announced this to employees. They have allowed over 55 employees to apply for voluntary severance. After VS they will likely will layoff people similar to what happened in 2024. Over 65 VS then later had layoff in early 2024. Predict 2025 January VS, then layoff later in 2025 to meet reduction in cost goals. Low cost centers will allow NXP to limp along until transfer of products lines to Malaysia in 2026. Those that stay around to do transfer and shutdown will get best package. Predict it will get more lean in coming years until shutdowns. If you can get a job that has better future and has better cash flow for your organization might want to consider those options.
Looks like they are closing shop in the US. As another person mentioned, instead of bringing manufacturing back to the US, NXP seems to be getting rid of all their assets there. Weird that US state or federal government allows something like that, I guess they can do it since they are not an american company
Another company sells out the employees and their cities for the benefit of the shareholders, board of directors, and executives
So much for bringing manufacturing back to American shores.