Littlefuse to relocate foreign job site

Des Plaines-based Littelfuse Inc. on Wednesday announced plans to transfer its semiconductor assembly and test operation from Matamoros, Mexico, to China in a phased transition over two years.

Afterward, the Matamoros facility will be closed, affecting about 950 employees.

The project is expected to generate about $7.4 million in annual savings once the transition is complete.

Manufacturing operations will be consolidated into the company's existing assembly and test facility in Wuxi, China, and with subcontractors in China. When the transfer is completed, semiconductor assembly and test operations will be in the same location as the company's new Wuxi wafer fabrication operation, which is scheduled to start production in the first quarter of 2009.

Combining assembly, testing and wafer fabrication into one facility will increase efficiency and reduce manufacturing costs, Littelfuse Chief Executive Officer Gordon Hunter said in a statement.

"We are committed to making this transition as seamless as possible for our customers," said Hunter. "As part of that commitment, we will maintain continuous production capabilities for all products throughout the move."