RF Micro Devices (NASDAQ:RFMD) is pulling out of a manufacturing plant in the United Kingdom and moving the work done there to a manufacturing plant in Greensboro.
Greensboro-based RFMD, which makes semiconductor components used in wireless devices, said the move is part of its new gallium arsenide sourcing strategy. Gallium arsenide is a semiconductor compound used in making some electronics components.
The Newton Aycliffe, U.K. plant will be phased out over the next nine to 12 months, in order to support existing contracts. The plant had been RFMD’s primary source for cellular switches. RFMD has transitioned to higher performance and lower cost silicon on insulator. Once the U.K. plant closes, RFMD expects it will save about $20 million annually.
RFMD did not say what impact the changes will have on jobs. But the company did say that it is actively seeking a buyer for the U.S. facility. If a buyer cannot be found, RFMD said it will close the plant once contractual obligations are met.
