RFMD RF Micro Devices has announced it will phase out manufacturing at its Newton Aycliffe plant over the next 12 months as it shifts production of semi-conductors from the North East to North Carolina.
A buyer is being sought for the iconic factory on the edge of the Business Park. A spokesman said: “If a buyer cannot be found, the facility will be closed once contractual obligations are met.” The group expects to make around £13m in cost savings annually following the move. Bob Bruggeworth, president and CEO of RFMD, said “We expect these structural changes to have a lasting positive effect on the company’s cost structure, resulting in meaningful gross margin expansion.”
RFMD became the third owner of the Newton Aycliffe plant when it bought it for £12.5m in 2007 from Yorkshire company Filtronic. It originally opened as a micro-chip plant operated by Fujitsu.
