Latest news: Amidst a slowdown in the industry, Tower Semiconductor plans to shut down most of its business in Newport Beach, USA for three weeks, which will take leave for nearly 700 employees.

It is reported that Gaota Semiconductor has confirmed that it will close most of its business from April 1st to 7th, and plans to close more business from July 1st to 7th and October 7th to 13th.

In a recent announcement to employees and the state Department of Employment and Development, Gaota Semiconductor stated that orders at its factory located at 4321 Jamboree Road are decreasing as customers are clearing inventory accumulated during semiconductor supply restrictions in the past two years.

Gaota Semiconductor stated that the planned three-week shutdown is to avoid longer shutdown times, which may lead to unemployment. The affected employees include engineering and technical personnel, financial planners, manufacturing workers, and utility operators. In addition, the equipment will remain in a "hot shutdown state" and electricity in unused areas of the factory will be shut down.

Gaota Semiconductor was founded in 1993 and produces analog and mixed signal semiconductors primarily used in automobiles. It is expected to generate revenue of $350 million in the fourth quarter of 2023, with a fluctuation of 5%, a decrease of over 13% compared to the same period last year.

Intel terminated its plan to acquire Tower Semiconductor in August 2023 and paid a termination fee of $353 million. The two companies announced in September 2023 that Intel will also provide OEM services to the company in a transaction, with Gaota Semiconductor investing $300 million in Intel's New Mexico factory.

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