LSI Logic Corp sells semiconductor manufacturing plant

Reuters

LSI logic Corp. a maker of microchips used in DVD recorders in data storage devices, set on Tuesday it would sell its Oregon semiconductor manufacturing plant and move to a strategy of using contract chipmakers.

According to the Mail Tribune, the decision means an immediate layoff for 90 of the company 630 Oregon employees by Halloween.

LSI and other semiconductor company shed more than 7000 Oregon jobs from 2001 to early 2004 according to the Oregon employment Department.

The article states that part of the reason for their decision to outsource its production to contract manufacturers who take advantage of high minds and low overhead in Asia to keep costs down.

Again, another example of just how expensive it is to have a business in Oregon.

The company that I worked for did the same thing. As soon as a tax breaks were over, we had to start cutting manufacturing costs and overhead leading up to a layoff of 70 people to finally closing the eight-year-old plant a year later forcing an additional 375 people to lose their jobs.