LONDON – Despite long term plans for expansion in Singapore, foundry chip maker Globalfoundries said that it is cutting 300 jobs there due to a "softening of the current macro-economic climate."
The cuts represent about 4 percent of Globalfoundries' Singapore employee base, the company said. They were announced at the same time as Globalfoundries Inc. (Milpitas, Calif.) said it was embarking on a long-term initiative to expand 300-mm manufacturing capacity in Singapore. The initiative is called "Vision 2015" but the company did not provide a budget for the project.
Globalfoundries said it intends to tune the Singapore mix of existing and new process technologies to better serve growth markets and to position Globalfoundries as a partner to companies that need advanced analog, digital, high-voltage and RF functionality. The initial phase of the plan will include a capacity expansion of Fab 7 300-mm facility to be on a trajectory of nearly 1 million wafers per year. The expansion is expected to be completed by the middle of 2014.
"When this initiative is completed, Singapore will provide the widest range of technologies and the best choice for a broad base of semiconductor and integrated device customers," Ajit Manocha, CEO of Globalfoundries, said in a statement.
I'm not currently on the rumor grapevine for Global, but in semi usually the hiring and firing binges happen because of the demand for the products being manufactured. When people are buying the products, they ramp up production and hire like crazy; When demand drops, they layoff and fire and sometimes reduce hours.
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