© george tsartsianidis Components | November 03, 2016

Broadcom abandons plan to revive former Hynix plant

It looked like Eugene, Oregon would see the old Hynix semiconductor plant up and running again – but under a different name. However, Broadcom has now decided to sell the unused site.
Lets start at the beginning. Back in November last year evertiq reported that the old Hynix facility – which has been collecting dust since 2008 – in Eugene, Oregon would see new life through its new owner, Avago Technologies.

"The Eugene site is an attractive option for expansion," Avago vice president Stan Strathman said in a written statement to Oregonlive. "The Hynix facility is well suited to our manufacturing needs, while the Eugene location provides access to a strong labor base and an established infrastructure supporting high-tech manufacturing."

What later happened was that Avago – which at this point had acquired Broadcom and taken the name – was asking for USD 21 million in enterprise zone tax breaks on its investments, which were to include USD 300 million in production equipment and USD 100 million in facility improvements to the factory, the site had after all beenclosed since 2008. The company would also hire 229 people for the reopening of the factory.

Fast forward to now and Oregon-based paper The Register Guard reports that Broadcom is planing to sell the 1.2 million square-foot facility – and thus abandoning its previous plans converting it for the manufacturing of smartphone chips.

Company spokeswoman JP Clark told the Register Guard that; “Broadcom has decided to sell an unused (fabrication) site in Eugene, Oregon, that it no longer plans to deploy in its wireless semiconductor business.” When asked why, she declined to answer.

The company put the property up for sale on Tuesday, according to Eugene Area Chamber of Commerce President Dave Hauser. Broadcom representatives did not explain to him reasons for the decision, Hauser said.

“Our contacts were unable to share any information with us as to the motivation for the sudden pivot at this time,” he said. “They did reinforce that the support they had received from our chamber, the city of Eugene, local partners and the state of Oregon were both important and appreciated.”

The plant was purchased last year – and the company put the property up for sale on Tuesday, November 1.
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