The president of AT&T Microelectronics, Curtis Crawford, speaking at a press conference organised to mark the tenth anniversary of the company’s presence in Spain, confirmed a recent announcement made by Jose Solla, president of AT&T Espana SA, that some $147.5m is to be invested in AT&T Microelectronica’s Tres Cantos factory in Madrid over the next two years. The money will be spent on modernising the plant and refurbishing it for production based around 0.35 micron technology. It is hoped that the plant will be turning out some 5,000 wafers a week by the end of 1996, mainly destined for the cellular telephone and portable computer markets. Crawford said that AT&T Microelectronics was embarking on an important phase of worldwide expansion and had earmarked some $2,050m for such plans over the next five years, plus a further $1,025m for research and development over the next four years. He added that some of this money will be invested in a new manufacturing plant, the location of which remains a mystery, although it would appear that Spain is competing with China and the US to win the site. Crawford claimed that AT&T’s division into three companies will bring clear benefits, and will mean less complexity in day-to-day management, greater strategic clarity and a stronger focus on the client. He also explained that the production activities of AT&T Microelectronics and AT&T Network Systems would not merge in Spain, due to the difference in their line of business and markets. AT&T Microelectronica had a turnover of $185.2m in the 1994 fiscal year; it said that 95% of production was sold outside AT&T, and 75% went to Europe. Edward Akers, managing director of the Spanish subsidiary, would not speculate on figures for the current year but he suggested that although profits had fallen this year, significant growth could be expected in 1996.
