According to industry sources, eight out of the top 20 companies in the global semiconductor market are carrying out or planning to or carry out restructuring. North American companies such as Intel, Qualcomm and AMD, in particular, are predicted to let go of more than 30,000 employees in total.
This can be attributed to the ongoing recession in the PC market, sluggish demand for smartphones and M&As between semiconductor firms that hit an all-time high last year. Experts point out that the excessive investment in the semiconductor industry that continued for four years based on the smartphone market boom during the period is subsiding now.
Intel recently announced that it would withdraw from the mobile system-on-chip business and lay off 12,000 employees. AMD is currently laying off 5% of its employees due to the slowdown of the PC market. Qualcomm said last year that it would dismiss 5,000 employees.
The same trend is being witnessed in the other segments of the semiconductor industry, too. For instance, Broadcom Corporation, recently acquired by Avago Technologies, is to dismiss 1,900 employees and GlobalFoundries is planning to lay off 20% of its workers in the United States, Europe, etc.
In the meantime, Sharp is predicted to let go of 2,000 or so employees this year with the prices of LCD panels plummeting amid the current supply glut triggered by Chinese manufacturers. Likewise, Samsung Display is to concentrate more on OLED after disposing of much of its LCD business within this year. The LCD industry of China is likely to go through a period of adjustment as well with the Chinese government reducing its subsidies for the sector.
ccording
to industry sources, eight out of the top 20 companies in the global
semiconductor market are carrying out or planning to or carry out
restructuring. North American companies such as Intel, Qualcomm and AMD,
in particular, are predicted to let go of more than 30,000 employees in
total.
This can be attributed to the ongoing recession in the PC market, sluggish demand for smartphones and M&As between semiconductor firms that hit an all-time high last year. Experts point out that the excessive investment in the semiconductor industry that continued for four years based on the smartphone market boom during the period is subsiding now.
Intel recently announced that it would withdraw from the mobile system-on-chip business and lay off 12,000 employees. AMD is currently laying off 5% of its employees due to the slowdown of the PC market. Qualcomm said last year that it would dismiss 5,000 employees.
The same trend is being witnessed in the other segments of the semiconductor industry, too. For instance, Broadcom Corporation, recently acquired by Avago Technologies, is to dismiss 1,900 employees and GlobalFoundries is planning to lay off 20% of its workers in the United States, Europe, etc.
In the meantime, Sharp is predicted to let go of 2,000 or so employees this year with the prices of LCD panels plummeting amid the current supply glut triggered by Chinese manufacturers. Likewise, Samsung Display is to concentrate more on OLED after disposing of much of its LCD business within this year. The LCD industry of China is likely to go through a period of adjustment as well with the Chinese government reducing its subsidies for the sector.
- See more at: http://www.businesskorea.co.kr/english/news/ict/14680-global-it-restructuring-restructurings-going-global-semiconductor-display-industries#sthash.elhw5DaH.dpuf
This can be attributed to the ongoing recession in the PC market, sluggish demand for smartphones and M&As between semiconductor firms that hit an all-time high last year. Experts point out that the excessive investment in the semiconductor industry that continued for four years based on the smartphone market boom during the period is subsiding now.
Intel recently announced that it would withdraw from the mobile system-on-chip business and lay off 12,000 employees. AMD is currently laying off 5% of its employees due to the slowdown of the PC market. Qualcomm said last year that it would dismiss 5,000 employees.
The same trend is being witnessed in the other segments of the semiconductor industry, too. For instance, Broadcom Corporation, recently acquired by Avago Technologies, is to dismiss 1,900 employees and GlobalFoundries is planning to lay off 20% of its workers in the United States, Europe, etc.
In the meantime, Sharp is predicted to let go of 2,000 or so employees this year with the prices of LCD panels plummeting amid the current supply glut triggered by Chinese manufacturers. Likewise, Samsung Display is to concentrate more on OLED after disposing of much of its LCD business within this year. The LCD industry of China is likely to go through a period of adjustment as well with the Chinese government reducing its subsidies for the sector.
- See more at: http://www.businesskorea.co.kr/english/news/ict/14680-global-it-restructuring-restructurings-going-global-semiconductor-display-industries#sthash.elhw5DaH.dpuf
http://www.businesskorea.co.kr/english/news/ict/14680-global-it-restructuring-restructurings-going-global-semiconductor-display-industries#sthash.elhw5DaH.dpu
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