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Veldhoven, The Netherlands, October 16, 2001
As a consequence of the continuing downturn in the semiconductor industry, ASML Holding NV (ASML) announced today that it will accelerate integration with its newly merged Silicon Valley Group in the United States and will further reduce its global work force by approximately 1,400 positions (17%), compared with today's work force of 8,000. This will result in a total work force of 6,600 by the end of the first half of 2002. The total amount of the related charge will range between €370 million and €430 million, depending primarily on the level of non-cash charges for obsolete inventory, which in turn will depend on the level of customer demand through the end of the year for related products. However, cash employed in the restructuring will not exceed €128 million, which will be used over the next 18 months primarily to cover outlays related to the consolidation of operations, including employee termination payments. Today's announcement is in addition to previously implemented workforce reduction measures, bringing the total decrease of employees to 2,000 (23%). All regions will be affected.
Doug Dunn, ASML's president and CEO, said: "We are determined to strengthen our position in readiness for the next upcycle and to take full advantage of our merger with SVG. We have broadened access to leading-edge technology, increased our R&D presence in the United States and accessed new customers and markets. We have also acquired new production capabilities and expanded our supply base. All of our businesses will continue but in a more focused and efficient way. Manufacturing operations will be consolidated and R&D programs merged. These actions begin now and will be completed during the second quarter of 2002.
All USA lithography operations will be consolidated into the Wilton, Connecticut, facility. All Track operations in San Jose will be combined into a single facility and all Thermal products operations into the Scotts Valley, California location. These moves will streamline production, improve operational efficiencies and enhance R&D programs.
"We are confident that these necessary restructuring measures will provide a solid platform for the future. ASML will come out of this downturn strongly and successfully," Doug Dunn added.
ASML is one of the world's leading providers of advanced technology systems for the semiconductor industry. The company offers an integrated portfolio of lithography, track and thermal systems mainly for manufacturing complex integrated circuits. Headquartered in Veldhoven, the Netherlands, ASML is traded on Euronext Amsterdam and Nasdaq under the symbol ASML. For the first half of 2001, the company reported net sales of over €1 billion. ASML employs approximately 8,000 people in 50 locations throughout the world. For more information, visit www.asml.com.
'Safe Harbor' Statement under the US Private Securities Litigation Reform Act of 1995: the matters discussed in this document include forward-looking statements that are subject to risks and uncertainties including, but not limited to, economic conditions, product demand and industry capacity, competitive products and pricing, manufacturing efficiencies, new product development, ability to enforce patents, availability of raw materials and critical manufacturing equipment, trade environment, and other risks indicated in filings with the US Securities and Exchange Commission.
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