IDT to close California chip plant

Communications chip maker Integrated Device Technology (IDT) has announced plans to close down its chip fabrication plant in California, one of two the company owns, it said late Wednesday.

Operations at the company's semiconductor plant in Salinas, California, will be shut down by the second half of this year with the loss of around 260 jobs, the company said. It is planning to shift production in Salinas to its more advanced Hillsboro, Oregon, plant. The latter facility is capable of producing chips using a 0.18-micron process compared to the 0.35-micron process used at the Salinas plant. An upgrade to 0.14 micron is planned for the Hillsboro plant this year, IDT said.

The plant closure was necessitated by IDT's drive to newer products which require more advanced production technologies, the company said. Coupled with the current economic situation, sustaining operations at the Salinas plant have become "very challenging," according to the statement.

IDT said it will announce more details of the plant closure when it releases its third quarter fiscal results on Jan. 22.

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