Big Blue is being tight lipped as usual about how many employees are getting the ax, but at least some of the jobs being cut are in semiconductor R&D.
The big question in
semiconductor circles is how many of the job cuts are related to IBM's
semiconductor R&D work and what impact that will have.
to the Bloomberg report, at least 165 of the job cuts were in
semiconductor research and development. It's not known how many of these
jobs were based in upstate New York, where IBM is a central player in
the move to establish the Albany area as the premiere location for
semiconductor R&D globally. At least some of the R&D jobs
eliminated were at North Carolina's Research Triangle Park, according to
a separate report by the Herald-Sun, which also references
growth of the semiconductor R&D and manufacturing ecosystem in and around Albany has
been a major win for the U.S., and particularly for New York State.
While the final numbers are not yet in, it would appear that IBM has cut
at least some workers in that area. Will the IBM job cuts be a drag on
US Semi co.s committed suicide by training Engineers from competing countries. Where would TSMC or Samsung be w/o many hardworking technologists who got their education & work experience in the US - starting with Morris Chang ( ex TI ) himself.
I guess the main idea is that we jettison all our manufacturing and services ultimately only holding brands for which a small number of people will collect royalties. Unfortunately this will be a bad trip: the majority out of real work will eventually get poor, hungry and angry so they will string the rich minority high; the foreign manufacturing nation will stop paying anyway since if all the actual wealth creation goes abroad then eventually they will develop their own consumer market and be able to afford military on par with (or better than) ours...
Russia may have lower taxes but that usually is offset by the necessary bribes, extortion and outright theft. Trust me.
As for China I have been there and I still hold my judgement, it is still a communist country and it shows and feels. It still may collapse or explode in our faces ...
You mean these companies are unpatriotic. After all it is OUR government, is not it? Yes I blame them and if they move the manufacturing abroad there should be a punitive tariff on their products entering this country. Unless we want very small government, Somalia-style anyone?
without there own Customized Chips that differentiate them from likes of HP, intel, Dell & other Server vendors, IBM System business will fall too, and their software business is dependent on selling Servers. All in 1 bundle.
I don't see IBM getting out of making their own chips in near future,
IBM Still own an 8" inch Fab in Vermont, that still makes profit..
I am pretty sure they can make it work on their 300mm Fab as well.
IBM hires and fires Engineers on a regular basis, This is just part of the cycle. Number of IBM Designers, process R&D and IBM research engineers still working will surpass lots of other companies.
With fab cost skyrocketing, there is no way that IBM internal need enough to justify its own fab. I bet that total annual wafer from IBM fab is way less than Wafers Qualcomm acquires from TSMC. It will be much cost effective for IBM just simply uses TSMC.
January 2016 Cartoon Caption ContestBob's punishment for missing his deadline was to be tied to his chair tantalizingly close to a disconnected cable, with one hand superglued to his desk and another to his chin, while the pages from his wall calendar were slowly torn away.122 comments