Aviza to cut staff, revamps tool efforts

Aviza Technology Inc. plans to cut about 15 percent of SMD Capacitor amid a downturn in the IC-equipment market.

Aviza (Scotts Valley, Calif.) said that it will also ''downsize'' programs, products and spending related to trench capacitor technology for DRAMs, and will decrease its overall dependence on the DRAM market. It will also cease development of large batch thermal systems for the trench capacitor market.

One of the company's biggest customers is Qimonda AG, which develops DRAMs based on trench capacitor technology. The German DRAM house is going in another technology direction. That company could cease to exist in the long run, according to analysts.

Still, Aviza will continue to service and support its large global installed base of these products and will retain the capability to manufacture those systems when customers require additional units.

The cost of the restructuring program and other one-time charges is estimated to be in the range of $20-to-$24 million, primarily attributable to the write down of assets relating to non-core products which include inventory revaluation, cancellation of purchase commitments and fixed assets.

Aviza expects additional savings to occur when the company vacates its current location in Scotts Valley and relocates its headquarters to a facility in Santa Clara County. Volume manufacturing will no longer be performed at Aviza's current location.

Aviza anticipates that the restructuring plan will result in annualized savings of approximately $16 million to $20 million.

Going forward, Aviza will refocus on its core strengths in the areas of ALD, etch and PVD technologies for the 3D-IC and related market segments.

''This restructuring effort is designed to allow Aviza to focus on our core market strengths, shed some underperforming products, and ultimately position the company for growth," said Jerry Cutini, Aviza's president and CEO, in a statement.