STMicroelectronics quasi global layoffs memory capacity will shift China

Following the early exit non strategic chip market, STMicroelectronics came layoffs. The company's public relations manager Qiu Hong, said the Italian law intends to lay off 3000 people in the middle of the year before the year 2006, the region involved only outside the Asia Pacific region.

Electronic materials provide care method, the company said, as companies in the restructuring phase, the dollar against the euro has been sluggish, and the global semiconductor industry has continued to slump, meaning law in terms of exports greatly limited, resulting in the first quarter of 2005 net income fell 10.5% in the fourth quarter of last year, a net loss of $31 million. This is the company's first loss in 5 consecutive quarters of earnings. Therefore, the company tried to transfer to enhance the global market competitiveness through layoffs.

This seems to be part of the restructuring plan since the beginning of stmicroelectronics. Qiu Hong had told reporters that the company will conduct a series of restructuring plans to adjust its product line, cut the modem and non strategic chip products. She said at the time, the company will also take additional cost control measures to enhance competitiveness. But she did not mention whether or not with the layoffs.

At the same time, this is the second in recent years, the company plans to lay off a large number of stmicroelectronics. It is reported that in 2001, a decline in semiconductor cycle, Italy will take the layoffs strategy, and successfully through the storm. The success of the Italian law, will be its new CEO Carlo Bozotti took office after the biggest challenge. The company's assessment report said the restructuring plan will cost $100 million ~1.3. However, since the completion of layoffs in 2006, is expected to save at least $90 million a year expenditure.

It is worth mentioning that, as the world's third largest memory manufacturer, due to fierce competition in the market, the price pressure continues, the loss of $60 million last year, the memory business, the same loss in the first quarter of this year reached $62 million. In response to this situation, STMicroelectronics CEO said, do not rule out any possibility."

Layoffs outside Asia, showing the trend of the global semiconductor industry continued to move to asia. In fact, Carlo Bozotti as early as 1 months ago, said the Italian law will speed up the closure or reduction of Europe's 6 inch chip factory, some European production base will be transferred to the Asia Pacific region. In addition, the meaning of France's 1000 R & D manpower is transferred to singapore. In addition, the company's website announced that the layoffs of 3000 employees may have to go to Asia in 1500.

"European factory capacity is expected to move to Wuxi, china." Red Hill said, meaning law and Hynix in Wuxi joint venture plant in September will be officially completed, and will be in the first half of next year is expected to mass production 8 inch line products, "at that time, European factory capacity is expected to gradually transfer to the Wuxi factory."