Filtronic has closed the 75mm compound semiconductor fab at its US Filtronic Solid State subsidiary in California. The operation will now run fablessly using Filtronic's UK facility in Newton Aycliffe to produce devices. The UK group is hoping the UK fab will break even by May 2003, dependent on the success of its customer M/A-COM in the wireless handset switch market. The failure of this opportunity would see Newton Aycliffe lose more than GBP1mn a month for the rest of the financial year (to May 31, 2003).

The first
sales to M/A-COM have already been recorded at "modest levels". Most other
opportunities for the venture are not expected to kick in until the next
financial year. The aerospace company BAE is expected to be another major
contributor to the company's compound semiconductor sales in the future.

Verteq has created separate business units for its single wafer and batch
process platforms. The Goldfinger business unit will manage all single wafer
cleaning products including the Goldfinger GFM, Mach1 and Mach2 products.
The Batch Process business unit will manage the Sunburst megasonics,
SuperClean rinser dryer and Cobra VcS batch cleaning product lines. Verteq
expects Goldfinger to represent the largest portion of its overall business
in 2003 and beyond.

Atmel has closed a manufacturing facility in Texas, effective immediately.
The facility was bought from Hitachi in 2000. The fab employed 300 people at
the time of its closure. The facility will be placed for sale by Atmel.