American Semiconductor Company Vishay Restructures, Closing 3 Factories Including Shanghai
Semiconductor giant Vishay Intertechnology announced on September 24 that it has launched the Vishay 3.0 development strategy, which includes laying off 800 employees in this restructuring and planning to close three factories including the one in Shanghai, China.
Vishay Intertechnology in the United States will implement its restructuring plan in stages:
Personnel reduction
From now until the fourth quarter of 2025, sales, general affairs, and administrative personnel will be streamlined. Approximately 170 employees will receive severance pay, accounting for 6% of the total number of sales, general affairs, and administrative staff.
Closing 3 factories
By the end of 2026, Vishay will close its diode backend factory in Shanghai, China and begin phased production transfer starting from the fourth quarter of 2025.
In 2026, two small resistor production plants located in Feucht and Milwaukee, Wisconsin, Germany will be closed.
The closure of these factories will result in a reduction of approximately 365 direct labor force for Vishay, accounting for about 2% of its manufacturing workforce.
Other adjustments
Various changes in production operations and production transfers will result in severance payments to approximately 260 employees.
Restructuring goals
As a result of implementing these plans, the company expects to incur pre-tax cash costs of approximately $38 million to $42 million, primarily related to severance costs, with most occurring in the third quarter of 2024.
Once fully implemented by the end of 2026, Vishay expects to achieve annualized cost savings of at least $23 million, with around $12 million expected to be used for sales, general and administrative expenses.
The company anticipates immediate annualized cost savings of about $9 million. Starting from the first quarter of 2025, it is expected that annual cost savings of around $12 million will be achieved.
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