Lucent bucks chip trend and expands manufacturing plant

Showing its strength in the face of a global chips crisis, Lucent Technologies Microelectronics Group last Friday announced plans to expand its main semiconductor manufacturing facility.

The Union Boulevard Allentown plant in Pennsylvania will employ an additional 1,625 staff over the next eight years, with many of them housed in a new 560,000 square-foot building. The facility will act as the worldwide headquarters for the Microelectronics Group's R&D (research and development), manufacturing and sales operations, which are spread across five countries.

The world's largest telecoms equipment manufacturer claims its chip business has experienced double-digit growth since the start of the year.

Mitul Mehta, senior European research manager at Frost & Sullivan noted the move highlights the way chip technology is in demand for telecoms equipment such as handsets. He said: "The wireless segment is driving the market and the major vendors are keeping their eye on it."

IBM is today expected to unveil chips based on silicon germanium technology, which are also intended to target the markets for mobile phones and pagers.

Mehta added: "That market is exploding, and we're going to see a lot more activity by the major players."