NEC set to have its fabs nabbed

New entrant snaps up server chip fab...

By Heather McLean, 23 October 2001 14:05

NEWS Global electronics contract manufacturer Solectron has announced its intention to buy NEC Ibaragi's factory operations. NEC Ibaragi is the large-scale computer server and workstation business of the NEC /Corporation based in Japan. Both companies said the deal will be finalised by the end of March 2002, although prices were not disclosed. The Japanese division made sales of Y31.5bn (£180m) over the 2000 to 2001 financial year. Ibaragi's manufacturing sales for the end of its financial year to March 2001 are expected to hit $237m according to a spokesman at Solectron. Solectron snapped up two Asia-based Sony factories last year and it intends to use a similar model of streamlining while continuing production with Ibaragi. Of Ibaragi's 650 employees, 500 manufacturing staff will transfer to Solectron and the remainder - development staff - will stay.

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