Freescale to close Scottish fab

Freescale has announced the imminent closure of its East Kilbride fabrication plant with the loss of around 800 jobs.

The company has been looking for a buyer for the plant since last year but, with no likely candidate and falling global demand for its chips, the plant looks almost certain to be shut down.

A Freescale spokesman said: "Following the announcement that a sale of the East Kilbride factory looks unlikely, Freescale and its employee representatives have now engaged in formal consultation on the remaining options.

"During the recent consultation process, employees fully examined the company's business case for East Kilbride manufacturing operations and explored the viability of all possibilities for the factory in light of customer requirement forecasts.

"All other viable options will remain open for consideration during the consultation period."

The factory was opened by Motorola in 1969 and produces power management, radio frequency and infrared products for the automotive market.

The plant covers over 7,600 square metres and is capable of producing 6in wafers down to 0.5-microns.

Freescale split from Motorola in 2006 but still relied on its former parent company for much of its business.

The firm is loaded down with billions in private equity debt after the split and has been making cuts.

Freescale is hoping to keep its East Kilbride R&D centre intact, saving around 140 jobs in the area.