PHILPS sharply cut the cost of semiconductor production shift to Asia

EST on September 14th (Beijing time September 15th) according to foreign news recently reported, PHILPS electronics plans to slash its semiconductor business costs, to improve its operating profit.

"We plan to cut $307 million in spending by the end of 2006," said van, chief executive of PHILPS semiconductor, Frans local time on Thursday at an online video conference with analysts. "The cost of production will be reduced by 125 million euros in the cut, followed by comprehensive and administrative expenses, Euro 75 million and R & D expenses of EUR 50 million. But he said the company would not close any of its factories.

According to the Frans van Houten said, according to the cost reduction plan measures, improve the yield of PHILPS semiconductor is outsourced to other semiconductor manufacturers, it is reported that in 2008, PHILPS semiconductor will more than 30% outsourcing to lower cost countries manufacturers. "Production will continue to move to Asia," he said. "

Currently, about 60% of PHILPS's revenue from Europe, especially china. He said that some non-profit and non core businesses will be sold. But he did not disclose details.

PHILPS's focus on the development of automotive electronics, wireless and personal entertainment products, as well as digital home products, consumer electronics accounted for 1/3 of its semiconductor division revenue.