California Semiconductor Manufacturer Closes Wafer Fab Plant At Idaho Complex

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Researched by Industrialinfo.com (Industrial Information Resources, Inc, Houston, TX). ZiLOG, Inc., (Campbell, CA) will be shutting down its 8 Wafer Fab plant in Nampa, ID, on Dec. 31, unless a buyer can be found before that time. Negotiations for purchase are presently underway with prospective buyers, whose identities have not been released. The first plant at the Nampa complex was a 5 Wafer Fab, built in 1979. ZiLOG plans to continue to operate this plant. However, the second plant, the 8 Wafer Fab that was built in 1995, is being sold. ZiLOG employs 400 people at its Nampa complex, 150 of whom would be laid off if a buyer is not found. This consolidation of their two Nampa plants and a testing facility, with resulting lay-offs, comes hard on the heels of an April 20 company-wide lay-off, affecting primarily the Nampa, ID, Campbell, CA, & Austin, TX operations. ZiLOG reported a significant second quarter 2001 loss, and is hoping to sell off these assets to maintain adequate cash flow for the remaining months of the year. This consolidation is expected to help address the operating loss experienced during the first and second quarters of 2001.