According to a media statement, the company will now bump up cost savings by consolidating its production volume into its two other assembly and test plants in Malaysia, and China.
The closure will impact about 950 employees, including professional staff, technicians and operators. Most of the equipment in Singapore will be transferred to the two plants to support ongoing products and customers.
Due to the shutdown, the company is likely to incur charges between US$27 million to US$30 million for the first quarter of its fiscal year 2006, ending Aug. 28 this year, mostly for severances. However, the move is expected to help National achieve quarterly cost savings of US$4 million to $6 million.