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Report: Renesas plans massive layoffs

7/28/2010 09:52 PM EDT
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eewiz
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CEO
re: Report: Renesas plans massive layoffs
eewiz   7/30/2010 3:58:40 AM
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IMO Japanese semi industry is on slow decline. IDM model, Aged workforce, Lack of new engineering talent, Inability to outsource/setup subsidiaries in developing countries are the main reasons. Previously when Hitachi & Mitsubishi merged their semi business to form Renesas, it was a 10B$ company. Sales gradually declined over the years to just around 5B. Now with a new round of mergers, If they dont change, I feel history is set to repeat.

Neo10
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re: Report: Renesas plans massive layoffs
Neo10   7/30/2010 3:03:19 AM
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I think this was bound to happen sooner or later. Renesas was carrying a load much heavier than it could for the prevailing times. Their micro controller market hasn't also shown much expansion to offset the costs and a foundry is the last think you need when the economy is whimpering.

chanj0
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Manager
re: Report: Renesas plans massive layoffs
chanj0   7/29/2010 6:55:27 PM
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The cost of running an operation in Asia is so much cheaper than that in the western world - both Europe and America. With the brutal competition from various companies, cost reduction is inevitable. Outsource to Asia seems to be an easy and viable solution. Production will eventually shift to Asia or any other developing world. If American workforces want to stay competitive, they will need to learn new technology and increase throughput by various means, for example, with the help of robotic and computer. The question comes to how American companies can employ enough workforces to keep the unemployment rate low with all those outsourcing happening.

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