Fairchild heads to Silicon Valley

1 min read

Fairchild Semiconductor has moved its corporate headquarters back to Silicon Valley in a bid to take advantage of the concentration of industry executives. According to chief executive officer, Mark Thompson, the chipmaker also wants to focus on customers and operations in Asia.

"The talent pool and the travel logistic won out for us," Thompson said. "On a 10 year planning horizon, it's still a very compelling place to site senior employees." The company has switched from its South Portland, Maine headquarters to a new home base in San Jose, California. While the company is recruiting management in California, it will not be relocating plants or starting production in the state again. According to Thompson, the San Francisco Bay area is too expensive for employees living on manufacturing salaries. He also believes that the high cost of living, taxes and a restrictive immigration policy for engineering students are hurting California's chances of remaining a centre for industry. He added that inflation in areas such as Shanghai has lessened the allure of alternatives. "There's no question that policies and practices that are at work could poison the place. That said, it still has a lot of strengths."