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emiconductor sector is badly affected by this economic downturn. Most semiconductor companies are cutting expenditure, slimming down their workforce and unfortunately some of them are closing down. In Decemeber 2008, StatsChipac, based in Singapore, announced 1,600 staff. The move is part of a restructuring plan to cope with a downturn in the semiconductor industry.

United Test & Assembly Center(UTAC) on the other hand implemented pay cut to its workforce thru four-working day a week at the beginning of first quarter of 2009.


Amkor Technology, a one of the leading semiconductor subcontractor for fabless and multi-national companies re-trenched thousands of its staff worldwide including senior executives and managers. ASE also experienced the same delimma and did not escaped from cost cutting programs.

INTEL shutdowned its main facilities in the Philippines leaving only a small group for Product Development Team and Manufacturing site for its Chipset Division. Texas Instruments laid-off few hendreds of its staff in Baguio City.

Another hit in the semiconductor industry is the closure of Intel-Micron NVM/Flash wafer fab in Singapore. It was very unfortunate for the company as its just started-up in 2008. Chartered Manufacturing, one of the leading wafer fab in Singapore also cut its workforce.

Recently, a small fabless company based from Sweden, SiCon Semicondutor, announced to shutdown its operations in Asia, covering Singapore, Korea, China, Japan and Design Center in India.

According to Semi.Org, investment levels are the lowest in over a decade. Spending on fab construction projects in 2009 is expected to be under $2 billion— the lowest level since 1999. Spending on equipping Front End facilities (fabs, pilots, R&D) is expected to decline by 55% to under $12 billion in 2009, which is the lowest level since 1994. For 300 mm fabs alone, spending will decline by about 58% to below the $10B— the lowest spending level over the past six years.

Everyone is hopeful that this current gloomy economy will start a new opportunities to other sectors and expected that the economy will start to rebound by the end of 4Q of 2009.