Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and United Microelectronics Corp (UMC, 聯電), the world’s biggest contract manufacturers of chips, cut workers for a third straight quarter to weather the global recession.
UMC reduced its work force by 15 percent to 11,619 as of March 31 compared with the end of June, while TSMC eliminated 6.2 percent of its employees to 19,537, filings from the two companies showed.
The 3,297 jobs, or 9.8 percent of the two chipmakers’ work force, that were cut over nine months helped drive up the nation’s unemployment rate to a record 5.72 percent in March.
In the first quarter, TSMC’s profit tumbled 95 percent, while UMC posted a loss as clients reduced orders amid the slowing global economy.
TSMC trimmed travel expenses and implemented leave without pay, helping it lower first-quarter selling, general and administrative expense by 31 percent from a year earlier, it reported on Thursday.
Local media also reported that Asustek Computer Inc (華碩電腦) had initiated a reorganization plan and shed up to 500 employees, or 10 percent of its work force, last month, to cut costs.
CEO Jerry Shen (沈振來) said at the company’s 20th anniversary recently that the firm’s restructuring would create an overlap in responsibilities for about 500 employees, triggering speculation of a layoff.
In contrast, Hon Hai Precision Industry Co (鴻海精密), the world’s largest contract electronics manufacturer, boosted its work force by 5 percent in the last quarter as orders for mobile phones and computers rebounded.
Hon Hai had 511,000 workers at the end of March, compared with 486,000 at the end of December, exchange filings showed. The company cut 19 percent of its workers in the fourth quarter, the filings showed.
The maker of Apple Inc iPhones, Sony Corp PlayStation 3 game consoles and Vaio laptops on Wednesday reported a 17 percent decline in first-quarter profit to NT$13.3 billion, almost double the NT$7.5 billion median of five analyst estimates compiled by Bloomberg.
Chairman Terry Gou (郭台銘) said on March 4 the company increased workers at its Chinese factories “by 5 percent or more” to meet demand.
ADDITIONAL REPORTING BY ELIZABETH TCHII
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