Microchip factory jobs 'at risk'

The company makes chips used in mobile phones and car engines

Hundreds of jobs are at risk after attempts to sell the Freescale microchip plant at East Kilbride have failed, it has emerged.

The company said that as a sale appeared unlikely, it would begin a formal consultation process with employees to consider further options.

Freescale's factory was set up by Motorola in 1969 to design and manufacture embedded microchips.

The products are used in mobile phones and car engines.

In a statement, the company said technology advances in the semiconductor industry had resulted in a long-term trend of falling customer demand for the products produced at the plant.

In July last year it announced it would carry out a review in light of falling sales. The company had hoped to sell the factory as a going concern.

The statement said: "We will continue to communicate with the employee forum and the entire employee population throughout the consultation process."

Options it will now consider include continued operation and closure.

About 1,000 Freescale employees work on the site - approximately 750 are directly involved in manufacturing, the remaining staff work in other functions.