LSI to outsource entire production

Christoph Hammerschmidt, EE Times
(08/01/2007 9:27 AM EDT)

MUNICH, Germany — LSI Corp. announced it will outsource its entire production including backend and test to third-party service providers. The move will save costs and create flexible capacities without additional investments, the company said. More than 2000 jobs are at stake.

The outsourcing decision is part of the company's Business Acceleration Plan which LSI announced after its merger with Agere in April. In this context, LSI signed an agreement with STATS ChipPAC in Thailand to sell its manufacturing line and test facilities for about $100 million. The move affects about 1.100 employees working at the Pathumthani plant.

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