Product category:
Power Supply ICs and Controllers
News Release from: Fairchild Semiconductor
Edited by the Electronicstalk Editorial
Team on 07 December 2001
Fairchild to invest $200 million in
China
Fairchild Semiconductor is to construct a new manufacturing and warehouse facility in China.
Fairchild Semiconductor is to construct a new manufacturing and warehouse facility in China The factory will be a state-of-the-art assembly and test facility for a broad range of logic, discrete and analogue products
This article was originally published on Electronicstalk on 28 Feb 2001 at 8.00am (UK)
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The proposed 80,000m2 plant will be built in several phases in the China-Singapore Suzhou Industrial Park (CSSIP) in Suzhou, Jiangsu Province, China.
Key to the company's global strategy, the new factory will produce products for both the local China market and for export to the rest of Asia, Europe and the Americas.
"This is a landmark announcement for Fairchild.
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As a cornerstone of our growth strategy, we plan to more than double sales in China by 2004.
We're the leading global supplier of power components, and this plant in Suzhou will play a vital role in supplying our customers with multimarket semiconductors that meet the needs of next generation applications", said Kirk Pond, president, CEO and chairman of Fairchild Semiconductor.
"The Suzhou plant will be the first factory completely constructed by Fairchild since becoming an independent entity four years ago.
It's a testament to the success of our global, multimarket strategy, providing high-performance power and interface solutions".
Fairchild currently outsources more than 50% of its assembly and test production.
To support Fairchild's projected growth, the new factory in Suzhou will balance the company's dependence on outside contractors, ensure more effective cost control, enhance production ramps for new products, strengthen the company's supply logistics and provide needed assembly and test capacity.
"This world-class assembly and test facility is just the latest manifestation of Fairchild's commitment to the China market.
We have many key customers in China, served by our regional sales headquarters in Hong Kong, our representatives in Shanghai and Shenzhen, and our technical support group", said Pond.
"Fairchild made a commitment in 1999 that China would be a cornerstone of our global business.
With the current worldwide economic slowdown, Fairchild is working with our partners at the China-Singapore Suzhou Industrial Park to develop the new site in phases to ensure our progress is consistent with market demands.
Planning construction on a new manufacturing facility in the present economic climate is a clear indication of our intention to remain at the forefront of the semiconductor industry", continued Pond.
"Throughout this difficult period, Fairchild has managed to outperform the industry and increase its market share across all product lines, while becoming the leading global supplier of power products and the number one discrete supplier in Asia.
I'm confident this new facility will enable us to continue to grow our market share in some of the world's more competitive markets, such as China".
The first phase is planned to start in early 2002 with the construction of a $10 million, 12,000m2, world-class back-end facility.
A 28,000m2 extension will follow prior to the final development of another 40,000m2 of factory space.
The total investment, including land purchase, construction costs and tooling, is expected to be $200 million over the next five years.
The new facility will provide a platform for global growth in the sectors targeted by Fairchild and will be used initially to manufacture the company's latest power devices.
Additionally, a number of similar products from other Fairchild groups will be consolidated for manufacturing at the site.
Situated in Jiangsu Province, the China-Singapore Suzhou Industrial Park is one of China's most successful industrial locations.
Jiangsu Province is second only to Guangdong Province in terms of electronics production, and output for 2001 is expected to be $8.3 billion.
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