Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest custom-chip maker, plans to cut costs next year as a global economic slump crimps demand for chips used in consumer electronics.
“We are reducing costs to come out stronger from the economic downturn,” Tzeng Jin-hao (曾晉皓), a spokesman for the Hsinchu-based chipmaker, said yesterday.
“We have plans to cut costs for everything, but we haven’t made a decision yet,” he said, declining to comment if the reductions would include salary or job cuts.
The Semiconductor Industry Association expects global chip sales will drop 5.6 percent next year. STMicroelectronics NV, Europe’s largest semiconductor maker, said on Friday its fourth-quarter revenue would be below the company’s forecasts because of a slowdown in orders.
Consumer electronics companies ranging from Nokia to Panasonic have slashed forecasts this month as consumers buy fewer cell phones, flat-panel televisions and computers.
TSMC, plans to cut capital expenditure next year, although the final budget is still being decided, Tzeng said. The company on Oct. 30 said it was considering a 20 percent cut in spending, Tzeng said.
The company will announce details at an investors briefing to be held at the end of January, he said.
The chipmaker has also imposed a hiring freeze, and would consider hiring only if there are special needs, Tzeng said.
Smaller rival United Microelectronics Corp (UMC, 聯電) may ask workers to take unpaid leave next year to cut costs, the Chinese-language Economic Daily News reported yesterday, citing unidentified company executives. The firm has already trimmed its workforce so it doesn’t plan to cut wages or ask staff to take unpaid leave this year, the newspaper said.
Alex Hinnawi, a spokesman at UMC declined to comment on the report.
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