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The two largest contract semiconductor manufacturers plan to cut costs by 20%, according to the source, citing a report from Reuters, in turn, based on data from an unnamed source.

Go to the specified step Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC) and United Microelectronics Corp. (UMC) forced by the economic crisis. The fall in demand for personal computers, cell phones, televisions and other consumer electronics devices painfully responded to a decrease in the need for element base. In other words, the volume of orders for integrated circuits has decreased.

Earlier, TSMC, the number one semiconductor contract manufacturer, announced that it was no longer hiring new employees. Now we can talk about mass layoffs and forced unpaid vacations, according to sources close to the company.

UMC considers the transition to a four-day working week as a cost-cutting measure. The fifth day will be considered unpaid leave.

How these measures will affect production volumes is easy to guess. But will they not affect the rate of development of new technologies?? As you know, UMC is in full swing developing technical processes designed to use the 32/28 nm standards, and hopes are pinned on TSMC for the release of new GPUs for AMD and NVIDIA. I would like to hope that the release of new products will help companies overcome the consequences of the global crisis.

Source: EE Times

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