ST Microelectronics will speed up its closing and scaling down of its six European chip factories and move its production capacity to Wuxi in China.

This is part of a bigger reorganization project, which includes product line adjustments and the cancellation of modulators, demodulators, and other chip offerings without any strategic importance. ST Microelectronics will also take measures to control costs in order to increase competitiveness. These measures will include laying off 3,000 workers in regions outside of the Asia Pacific region before the middle of 2006.