The SGS factory in Phoenix, Arizona looks like being a casualty of the merger between SGS Microelettronica SpA of Italy and the semiconductor interests of Thomson SA: the combined company had 23 subsidiaries around the world at the time of the merger, and has already closed a unit each in Malaysia and Singapore and further closures are planned over the next five years; in the US, Thomson-Mostek is likely to lose any separate identity, with the combined company operating as SGS-Thomson Microelectronics Inc; the European combination looks to break even next year on worldwide sales in the region of $1,000m.
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