September 25, 2024 /SemiMedia/ — Vishay Intertechnology, a leading manufacturer of semiconductors and passive components, announced a major restructuring as part of its "Vishay 3.0" growth strategy. The company will consolidate its manufacturing operations and cut nearly 800 jobs.

The restructuring involves closing three plants: a diode packaging facility in Shanghai, China, and two resistor plants in Fichtelberg, Germany, and Milwaukee, U.S. The closures are expected to be completed by the end of 2026, with production transfers starting in the fourth quarter of 2025. This will result in the reduction of 365 manufacturing workers and 260 employees in production, along with a streamlining of 170 sales and administrative roles, bringing the total number of layoffs to 795.

The restructuring is expected to incur pre-tax costs of $38 million to $42 million, mainly in severance payments, with most of the expenses anticipated in the third quarter of 2024. The company estimates annual cost savings of over $23 million once fully implemented.

Vishay President and CEO Joel Smejkal said the move aims to enhance decision-making, improve customer focus, and optimize the company's global manufacturing footprint.

In addition, Vishay plans to invest $2.6 billion between 2023 and 2028 to expand capacity, targeting a 12% increase in MOSFET production by 2025 and a 5.5% increase in semiconductor output by 2024.