The global economic slowdown is pressuring local high-tech firms to speed up their relocation to China to take advantage of cheaper labor on the other side of the Strait, business executives said yesterday.
Facing sagging demand abroad computer companies have lowered their profit targets and laid off workers. In the Hsinchu Science-based Industrial Park companies have sacked at least 4,000 workers so far this year, the largest number of layoffs since the park opened 20 years ago.
Another 1,200 people will lose their jobs soon as LG Philips Displays, a joint venture between South Korea's LG Group and Philips of the Netherlands, said it will shut down its two factories at the park this month.
While a few chip makers continued to recruit top engineers, laptop makers, chip packaging companies and networking firms have cut local production and moved assembly lines to China. China is attracting computer production as earlier investors have set up a chain of assembly lines to turn out needed components and spare parts.
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