Swiss-based STMicroelectronics said on Thursday that it will close its wafer-manufacturing plant on Corkstown Road in Ottawa, affecting 450 workers.
Due to the slowdown in the semiconductor industry, STMicroelectronics said it was slashing its capital projects budget for the year to $1.5 billion from $1.9 billion (all figures in U.S. dollars). It said this budget cut leaves it with excess manufacturing capacity, and that the Corkstown facility has been operating well below capacity recently.
The company said it would close the plant down by year's end, which will result in a charge of $30 million.
STMicroelectronics said several of the 450 workers affected would be offered positions at other locations worldwide.
STMicroelectonics acquired the Corkstown Road plant last year from Nortel Networks Corp., in a multi-year, multi-billion-dollar, supply and development deal.
STMicroelectronics is the world's third largest independent semiconductor maker.