Spansion has said it will close a test and assembly facility in Kuala Lumpar as it prepares for difficult market conditions in the last three months of the year.
The manufactuer of NOR flash chips has warned of an loss in Q4 as sales are hit by weakening market conditions.
"With macroeconomic weakness expected to continue in the near-term, we are taking proactive measures to reduce operating expenses," said John Kispert, president and CEO of Spansion.
As part of the cost reduction plans, Spansion is consolidating its two test and assembly manufacturing operations, which will result in the closing of its Kuala Lumpur facility and anticipated cost savings of around $30m annually.
Spansion reported a small net profit in the third quarter on sales of $258.2m.
"We will continue to strengthen customer relationships and accelerate adoption of new products," said Kispert.
The memory chip company has recently introduced several new products, including the Spansion GL-S family, the highest speed serial NOR products, the Spansion FL-S family, the highest density 4Gb parallel NOR products and new flash file software, the Spansion FFS flash File System.
www.spansion.com
