Electronics Production |
Philips cuts EUR 250 Million from chip business
Philips is planning major cuts to its semiconductor business. EUR 125 Million is going to be sliced from the semiconductor manufacturing.
Philips Electronics CEO, Frans van Houten told analysts that he is planning to cut some EUR 250 Million from the company's costs. Of the EUR 250 Million, EUR 125 Million will be sliced from manufacturing costs, EUR 75 Million from SG&A and EUR 50 Million from R&D. No factory closures are announced but some job cuts are expected. The cuts are expected to take affect by end of 2006.
van Houten further gave indications of that "unprofitable activities" will be sold and that Philips Semiconductors will outsource 30 percent of its business until 2008.
