FairChild Semiconductor restructures its supply chain

Filed in archive News on December 8, 2006

Fairchild Semiconductor International Inc. on Thursday said its board approved a restructuring plan aimed at reducing supply costs and saving $3 million a year.

Fairchild expects the moves to result in a charges of $4 million in the fourth quarter and about $500,000 in the first quarter to cover severance payments and asset impairment costs.

The changes will include consolidating and simplifying supply-chain planning processes.

"These transfers will allow for greater operating efficiency as resources will now be deployed much closer to key Asian business operations," Fairchild said according to Chron.

The company also reiterated its financial guidance for the fourth quarter, saying it expects revenue growth to be between zero and 2 percent, with gross profit margins down by 0.5 percent to 2 percent.

Fairchild plans to report quarterly results on Jan. 25.