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Date: 10-10-09

Allegro MicroSystems phasing out its wafer fab operations by mid-2012

Allegro MicroSystems has announced that it will be phasing out its Worcester wafer fabrication operations by mid-2012 and transferring its wafer fabrication activities to Polar Semiconductor. located in Bloomington, MN, is owned by Allegro's parent company, Sanken Electric Company, Ltd.

Allegro says, the action will impact roughly 190 positions in Worcester. Allegro will continue to maintain its Worcester headquarters facility, which houses administrative, new product and technology development, marketing and some manufacturing functions

"Since 2001, PSI has been a critical element of Allegro's manufacturing strategy. PSI has supported our needs for additional wafer capacity and has effectively installed our most advanced process technologies. The transfer of Allegro's wafer manufacturing operations to PSI builds on this successful relationship and allows us to streamline operations and reduce cost," said Dennis Fitzgerald, Allegro's President and Chief Executive Officer.

Regarding the Worcester workforce, Fitzgerald stated, "I'm deeply saddened by this decision and its impact on our employees. Our Fab team consistently achieved production goals and met the stringent quality requirements of our automotive customers, enabling us to succeed in this demanding market. We appreciate their long service and commitment. Unfortunately, our Worcester wafer fabrication capabilities cannot accommodate the advanced process technologies required by our customers."

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