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© jirsak dreamstime.com Business | March 01, 2021

With the shortage still weighing heavy ADI delays fab closure

In January Evertiq reported that Analog Devices was planning to permanently close its facility Milpitas, California.

In a WARN notice ADI stated that the plants 255 employees was given more than sixty days notification, as received the news on December 16, 2020. Terminations are expected to continue through October 29, 2021 as the company wind down activities, the notice continued. However, the manufacturer is reportedly delaying the closure of the factory as sales are high and supplies remain tight, CEO Vincent Roche told Reuters. The plant in question is focused on chips for the automotive industry and was planned to see a complete stop by October 2021 as the it would wind down activities. Now the plan is to stay open longer as the shortages plaguing the industry could persist through October. “We’ll likely keep that facility open a bit longer to be able to fill any gaps in supply,” Roche told Reuters. “We’re pretty much on track to go ahead with the closure by the end of the (fiscal) year.” CEO and the company are still convinced that a consolidation of the California plant with its Washington plant by October is the most cost-effective solution. However, this decision could be revisited in the future. “If demand goes up another notch, then that’s a different story,” Roche told Reuters saying that the company will be smart and adaptable.
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April 15 2021 9:56 am V18.15.43-1