1998-07-13 , ESC-9863
Business News From Philips Semiconductors

Philips Semiconductors - the leading European semiconductor company - today formally opened its second UK manufacturing plant - PowerFab* 2 - at Hazel Grove, Stockport. When in full production, Powerfab 2 will be making millions of power discrete semiconductors every day - vital components of electronic devices like mobile phones, PCs, VCRs, TVs, lighting controls, domestic appliances, and cars.

The two Philips Semiconductors Hazel Grove plants (PowerFab 1 was opened in 1986) - represent an investment of more than (£) 65 million over the last three years alone. The two plants have a combined production of almost two million power discrete semiconductors - daily.

The power discrete devices made at Hazel Grove are tiny, bearing components typically 400 times smaller than a pinhead: a single dust particle can contaminate the end-product and make it useless. The power discrete devices at Hazel Grove are fabricated in a clean room environment which is 2000 times cleaner than an operating theatre.

Construction of the new plant started in May 1997. First production of silicon wafers - which are diced into silicon chips bearing the discrete semiconductors - was achieved just 67 days after connection of the first production equipment. Philips Semiconductors believes that achieving almost full production in such a short time may be a world record.

The opening of the new plant will in due course lead to an increase in the number of employees - from 625 today to over 1000 over the next five years. In addition to production operatives, new staff will comprise engineers and scientific professionals who will be required to install and maintain equipment and work on the design, development and running of the processes. This brings the total number of Philips' employees in the UK to about 7700.

Philips Semiconductors is Europe's number one supplier of discrete semiconductors, and the third largest worldwide. Opening the new plant, Leon Husson, Philips Semiconductors' Managing Director, Discrete Semiconductors, said: "We chose to invest in Hazel Grove because the technological expertise is first class. PowerFab 2 is a state-of-the-art production facility, and marks the culmination of a major investment programme in manufacturing capacity, to help achieve our aggressive expansion plans in key world markets, and to become the world's largest discretes supplier within the next 4 years."

Philips Semiconductors, a division of Koninklijke Philips Electronics NV, headquartered in Eindhoven, The Netherlands, is the ninth largest semiconductor supplier in the world. Discrete semiconductors are central to the company's operations and it is the third largest discretes supplier in the world, with the target of becoming the world's largest. It has a very broad and deep product range grouped into three specific competences: Power, RF and General Application products which cover all application areas. Philips Semiconductors is supported by a worldwide network of systems laboratories and product application groups to develop complete, dedicated solutions to specific customer requirements.

* PowerFab = a contraction of Power Discretes Fabrication ("Fab" is the common industry term for a silicon chip production plant.)

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