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
IBM is making a strategic exit from PowerPC and the embedded marketplace; they have announced EOL of nearly all of their PPC750 line of processors by the end of 2013. Wonder why they chose to exit that business - I thought their parts and support were excellent.
Instead of selling technology to Foundries ( mostly offshore ) IBM should have chased the consumer SoC Foundry business itself. Even though low margin, these high volume products would have generated enough revenue to pay for R&D and next node Fabs.
What do you mean government isn't making it easy? It was reported that NYS was giving IBM nearly $1million in tax breaks *per*job* it created in Albany. That is likely a high figure, but still, the government has been bank rolling IBM's semiconductor business for years.
I fear the average American totally misunderstands what it means when a high tech company goes off shore. Nearly all think it because of the lower cost of wages That would be true if making fine geometry integrated circuits were labor intensive but as we EEs know, the fewer humans in your fab, the better. Still others think that environmental issues are central to the decision. China has come a long way and has certainly tightened up unfettered dumping, the days of dumping industrial waste into the nearest stream are over. The 900lb gorillas are taxes and governmental bureaucracy. For those of you over the age of 35, did you ever think you'd see the day where communist/former communists countries like China and Russia have lower taxes and a more pro-business attitude than the US????
Buddy, this is a tech site not a site for pushing misguided politics. Taxes are not the root cause. Decreasing taxes may change the time constant, but you still would eventually end up where we are today. I will give you some credit though, because you serendipitously provided a major cause in you asinine rhetorical question.
“For those of you over the age of 35, did you ever think you'd see the day where communist/former communists countries like China and Russia have lower taxes and a more pro-business attitude than the US????”
Maybe some people should think a little more????
The IBM layoff, to me, is more restructuring itself to the new economy.
No doubt, the manufacturing sectors are moving off shore. The more companies move off shore; the less the supply of talents. The momentum will just keep it going. How many fabrication are being done in the Silicon Valley? Silicon Valley today is hardly doing any semi-conductor related work. The current big Work-In-Progress are either cloud-related or social networking.
I'm sorry to hear the news. It is inevitable to any economy. I'm pretty sure talents who suffer today because of the layoff will find a way out to invent the next big thing. Stay Positive. ;)
This is what passes for discourse for some people - Bond Number cannot refute the demonstrably true statement that the lower taxes and pro-business attitudes in China and Russia are important factors in US companies out-sourcing so he reverts to what he knows best, name calling. And then he finishes with the suggestion that "some people should think a little more"....classic!
IBM has evolved into a company focused on systems, software, and services. in addition, the market for the ASICs and big iron processors IBM has developed for internal and external use has decreased. So, the announcement should not be a shocker. IBM is still a strong competitor, but semiconductors are no longer a key core competency for the organization.