800 Scottish Jobs Under Threat After Tech Factory Shut Down

£2 million cash injection can't prevent pink slips after Motorola/Freescale merger

Almost 800 jobs are expected to be lost due to a pre-announced closure of a US owned chip factory in East Kilbride, Scotland.

The manufacturing segment of Freescale is likely to suffer 700 job-cuts with 100 jobs in the administrative department involving HR and Finance, are under threat.

However, around 150 jobs in Research and Development (R&D) will remain unaffected; the company is looking for a buyer for last 10 months with no success.

The company admitted that it has failed in meeting the market demand, subjecting to rapid advances in semiconductor chip industry.

Freescale, set up in 1969, was originally established by Motorola, to dispense microchip solutions to a broad range of electronic products.

The company has parted from Motorola in 2006, but it still heavily depends on Motorola for its business.

To prevent the job-cuts, the Scottish Government has also awarded £1.9m Regional Selective Assistance (RSA) to Freescale last year.