Aviza Technology, a supplier of advanced semiconductor capital equipment and process technologies for the global semiconductor industry and related markets, has announced plans for significant restructuring following an analysis of the Company's product strategy, served markets and internal operations.
The restructuring of the Company's global workforce, products and business operations is designed to reduce the Company's cost structure, as well as improve operational execution and financial performance. Aviza will refocus on its core strengths in the areas of ALD technology for the sub-45nm nodes, and Etch and PVD technologies for the fast growing 3D-IC market segments. The end markets for these products continue to grow and are products in which Aviza believes it has competitive advantages as demonstrated by recent wins for ALD in Japan, Etch for MEMS devices and PVD for power ICs.
Aviza will downsize programs, products and spending related to trench capacitor technology for DRAMs, and will decrease its overall dependence on the DRAM market. In addition to shedding assets that are not core to Aviza's future business plan, Aviza will cease development of large batch thermal systems for the trench capacitor market. However, Aviza will continue to service and support its large global installed base of these products and will retain the capability to manufacture those systems when customers require additional units.
The cost of the restructuring program and other one-time charges is estimated to be in the range of $20 million to $24 million, primarily attributable to the write down of assets relating to non-core products which include inventory revaluation, cancellation of purchase commitments, and fixed assets. In addition, it includes certain costs relating to an approximate 15 percent world-wide reduction in force of employees and contractors. Aviza expects additional savings to occur when the Company vacates its current location in Scotts Valley, CA and relocates its headquarters to a more appropriately sized facility in Santa Clara County. Volume manufacturing will no longer be performed at Aviza's current location. Aviza anticipates that the restructuring plan will result in annualized savings of approximately $16 million to $20 million.
