INTEL:Intel supplier ASML cuts 1,000 jobs

Posted by Kris | Saturday, December 20, 2008 | | 0 comments »

Certainly it is an indicator that the Nasdaq giant is also affected by the current turmoil when its key supplier is cutting job heavily. Intel is currently trading at ~USD14+. It never fall down to reach my target price of USD10.  The lowest it has been is at USD12.2+.

AMSTERDAM, Netherlands - ASML Holding NV, a key supplier to Intel Corp. and other computer chip makers, said Thursday it is slashing 1,000 jobs - more than 10 percent of its global work force - following a plunge in orders.

The company also warned that its fourth quarter sales would be between euro450 million and euro500 million ($633-703 million), down from the euro530 million the company projected on Oct. 15.

"Never before have we witnessed such a sharp and sudden falloff in lithography system demand," said chief executive officer Eric Meurice. 

(Kris: foundries around the world has been cutting back on their expenditures. It is a no brainer to know that a silicon foundry FAB is a money burning monster even when it is idling!!) 

Most of the job cuts will be among staff on temporary contracts at ASML's headquarters in the central Dutch city of Veldhoven and at a manufacturing plant in Wilton, Conn. A training site in Tempe, Ariz., will be closed.

The company said it plans to shut down production facilities for a total of four weeks spread over the first half of 2009.