An idle semiconductor factory in Eugene, Ore., got a new owner Thursday who plans to restart production, a remarkable turnaround after seven years in which it seemed the shuttered site might be destined for oblivion.
Singapore-based Avago Technologies revealed that it’s the mystery buyer that paid $21 million for Hynix’s old chip factory, empty since 2008.
“The Eugene site is an attractive option for expansion,” Avago Vice President Stan Strathman said in a written statement. “The Hynix facility is well suited to our manufacturing needs, while the Eugene location provides access to a strong labor base and an established infrastructure supporting high-tech manufacturing.”
The company said it plans to make components for mobile phones in the 1.2-million-square-foot factory, which has been vacant since Hynix shut it down, eliminating 1,400 jobs amid a historic downturn in the memory chip market.
Avago said it plans to hire engineers, technicians and factory operators, along with administrative and management jobs. The company gave no indication just how many people it will employ, but Mayor Kitty Piercy said she’s hearing Avago plans to start with 250 to 300 employees once production gets underway.
First, though, Avago plans a major retrofit of the 17-year-old facility. The company said it will begin design work on the Hynix site next year and begin construction in 2017.
“It’s going to be a sizable investment in our economy,” Piercy said. “I’ve heard it’s going to take them up to two years before they’re ready to produce. But in the meantime there are going to be lots of jobs getting it ready.”
Avago traces its roots to Hewlett-Packard Co. and had manufacturing operations in Corvallis, Ore., before its split from HP. The company makes communications chips used in fiber optics and wireless communications. It’s a top competitor to Qorvo, which has a factory and corporate offices in Hillsboro, Ore.
