NXP has announced plans to close its Nijmegen, Netherlands factory, alongside three U.S. plants, prioritizing efficient production technology in new locations in Singapore and Germany. The Nijmegen site, historically significant, is currently the company's largest production facility for automotive chips, employing 1,700 staff. NXP aims to transition to 300-millimeter wafer technology to reduce costs and increase profit margins, supported by joint ventures in Dresden and Singapore, with projected operational readiness by 2027. The Nijmegen closure will occur over an estimated ten-year period, provoking unrest among employees and the local community.
The closure of the Nijmegen factory marks a significant shift for NXP, emphasizing technology upgrades and cost-efficient production as they move towards a new operational model.
NXP's decision to transition from 200-millimeter to 300-millimeter wafer technology is part of a broader strategy to lower costs and improve profit margins.
With a focus on joint ventures in new factories located in Singapore and Germany, NXP is looking to spread financial risks while enhancing production efficiency.
The intention is to transfer existing processes from Nijmegen to newer sites, ultimately aiming for the complete phase-out of older factories.
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