''We realize this comes at a difficult time, but Spansion has decided to extend its furlough through January across parts of the company. This decision is part of a part of a broader initiative to reduce operating expenses and help align manufacturing output with customer demand,'' the spokeswoman said.
Spansion is also telling employees it has enough product for customers to last for three weeks. As a result, manufacturing runs have halted at the firm.
''As a result of the continuing deterioration of the macroeconomic environment, which has resulted in decreased customer demand for flash memory, Spansion has decided to temporarily shutdown its manufacturing facilities for periods in January. This decision is part of a larger strategy to help align manufacturing output with customer demand,'' the spokeswoman said.
Spansion is taking steps to remain viable. As part of the moves, Spansion and Taiwan's Advanced Semiconductor Engineering Inc. (ASE) recently signed a memorandum of understanding to establish a venture to jointly own Spansion's IC-assembly operations in Suzhou, China.
The move was aimed to cut costs. Spansion has also signed a foundry deal with SMIC.
Last month, the U.S. International Trade Commission (ITC) agreed to investigate a complaint by flash memory specialist Spansion against some flash memory chips made by South Korean giant Samsung Electronics Co. Ltd.—as well as downstream products incorporating those chips from some of the biggest names in electronics.
And seeking to solve a major power problem in computing, Spansion recently rolled out a new class of memory that is said to replace DRAMs in the datacenter.
Dubbed EcoRAM, the new memory device is designed to solve the energy consumption crisis in datacenters. When combined with Virident's new GreenGateway technology, EcoRAM can help slash energy consumption by up to 75 percent in datacenter servers, according to Spansion.