NEC is to suspend operations of its semiconductor manufacturing facility, NEC Semiconductors Ltd located in Livingston, Scotland from April 2002.
It is proposed that all of the 1,260 employees will be made redundant by March.
NEC says the reason for the closure is due to the poor demand for mobile phone related system LSI and customised LSI for the European market.
As part of NEC’s global restructuring and in response to the downturn in the semiconductor industry, NEC has also closed certain domestic production lines, including a pilot line at NEC’s Sagamihara plant and part of a wafer fabrication line at NEC Kyushu Ltd.
In other overseas operations, NEC is carrying out restructuring measures to discontinue DRAM production, a move to a system LSI (Large Scale Integration) concentrated production base, and a reduction in wafer fabrication capacity and employee numbers at its wholly owned subsidiary in the United States, NEC Electronics Inc.