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On April 11, 2001, LSI Logic announced that it planned to close its 8-inch wafer fab in Colorado Springs in August—not that the facility had already shut. The company estimated that 500 employees, about 7% of its workforce, would be affected. Later accounts differ on both the number of jobs and the timing and status of a sale, so the available reports do not establish one definitive final closure date or headcount.
What LSI Logic announced in April 2001
EE Times reported on April 11 that LSI Logic planned to close the Colorado Springs facility in August. The company estimated a $120–$150 million charge associated with the planned closure and said about 500 employees—roughly 7% of its workforce—would be affected. Some employees would be offered transfers; others would receive severance, according to the report. EE Times, April 11, 2001
The $120–$150 million was an announced estimate of the charge, not a verified final cost. Likewise, August was the expected closure month at the time of the announcement, not confirmation that the fab closed then.
Why the company said it was closing the fab
LSI Logic attributed the decision to falling demand and excess inventory amid a weakening economy. Chairman and chief executive Wilfred J. Corrigan said: “This decision is precipitated by the weakening national economy, sharp decline in end-demand and the build-up of inventory in the supply chain.” The company also said its mature technologies were particularly affected. EE Times, April 11, 2001
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The move also fit a longer manufacturing shift. LSI Logic acquired the Colorado Springs fab through its 1998 purchase of Symbios and described the planned closure as part of consolidating manufacturing and increasing its use of foundries. EE Times, April 2001
What later reports said about jobs and the closure date
Later reporting did not match the April announcement on the expected headcount or timing:
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| Report | Jobs affected | Closure timing or status |
|---|---|---|
| EE Times, April 11, 2001 | 500 employees, about 7% of LSI Logic’s workforce | Closure expected in August |
| Colorado Legislative Council Staff, August 2001 | About 420 employees | Reported the plant would close in September or October after a planned sale to a German company fell through |
The August report’s estimate of about 420 affected workers differs from EE Times’s initial estimate of 500. These are estimates from different reports, not a confirmed final job-loss count. Colorado Legislative Council Staff, August 2001
Was the Colorado Springs fab sold to X-Fab?
EE Times reported on June 18, 2001, that the fab had been sold to X-Fab for about $120 million. That report described capacity of 3,000 eight-inch wafers per week and process capability of 0.35–0.60 microns, with 0.25-micron processes demonstrated. EE Times, June 18, 2001
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That sale report sits uneasily beside the Colorado Legislative Council Staff’s August account that a planned sale to a German company had fallen through. The available accounts do not reconcile the discrepancy, so they do not establish whether the reported X-Fab transaction was completed as described or how it relates to the later account.
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What can be concluded from the reports
- LSI Logic announced a planned closure on April 11, 2001; the facility was not reported as already closed on that date.
- The April announcement cited an expected 500 affected employees and an August closure plan; the August state report cited about 420 employees and a September-or-October closure window.
- EE Times reported a sale to X-Fab in June, while the August state report said a planned sale to a German company had fallen through. The sources do not resolve the difference.
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