In 2023, the semiconductor industry cycle will decline. Faced with continued uncertainty in the macroeconomic and demand environment, many semiconductor companies from raw materials, devices to terminals have laid off employees to save capital expenditures. The industry has experienced an unprecedented wave of layoffs. Many companies have also terminated their semiconductor business and are trying to survive. According to statistics, about 30 well-known companies will lay off employees in the fields of semiconductor equipment, design, and manufacturing alone in 2023.

From a domestic perspective, ZEKU, a subsidiary of OPPO, terminated chip research and development and laid off 3,000 employees, which shocked the industry. In addition, Xingji Meizu also stated that it would terminate its self-developed chip business and make personnel adjustments. "Moxon Semiconductor", a wholly-owned subsidiary of TCL Holdings, also revealed that the company was "disbanded" and layoffs affected nearly a hundred people.

Foreign giants have not been spared, laying off their Chinese teams or employees in other regions. Qualcomm has been exposed to layoffs many times, including in Israel, the U.S. headquarters, mainland China and Taiwan. Graphcore, a British chip design company and a potential competitor of Nvidia, confirmed that it will lay off most of its employees in mainland China and stop sales in mainland China.

Mainland China: Many companies terminate chip research and development business

OPPO's Zheku business terminated and 3,000 employees were dismissed

On May 12, OPPO announced the closure of its chip design company ZEKU Technology (ZEKU).

OPPO said that in the face of the uncertainty of the global economy and mobile phone market, after careful consideration, the company decided to terminate the ZEKU business.

Zheku HR read out the layoff compensation and resignation process at the meeting. Layoff compensation is calculated as N+3, where the base of N is the total of the employee’s monthly salary, bonuses and other payable income for the past year divided by 12. There is no upper limit of three times the limit in various places. As the fifth largest IC design company in mainland China, the nearly 3,000 employees of Zheku who were dismissed have become the targets of competition for major chip companies and headhunters.

Xingji Meizu: Terminates self-developed chip business due to uncertainty in global economic environment

In August, it was reported that due to the lack of actual business output and high investment costs, Xingji Meizu’s AR chip business department was about to make personnel adjustments. There are about 200 employees in this department, and more than 40 fresh graduates joined this year. The adjustment plan is to lay off all fresh graduates and retain a small number of old employees. The compensation plan is currently being negotiated.

Xingji Meizu responded that in the face of the uncertainty of the global economic environment, Xingji Meizu Group decided to terminate its self-developed chip business and focus more on product innovation and software user experience. Due to related business adjustments, which involve the adjustment and optimization of some personnel, the company is actively coordinating, communicating solutions, and properly solving problems in accordance with laws and regulations. For affected fresh graduates, the company is also maximizing diversion through internal recommendations and other methods.

Shangtang Technology has initiated layoffs in many departments, with a maximum range of 15% and compensation of N+2

In August, many current and former employees of SenseTime revealed that a new round of layoffs was coming, involving multiple departments, and they were required to leave within a week at the earliest. Several SenseTime employees said that the layoffs this time were relatively large. An employee of the Smart City and Commerce Group (SCG) said that his department had laid off about 10% to 15% of its employees; the quality center under SCG was disbanded, and product quality inspection tasks were assigned to various groups. An employee of the Intelligent Industry Research Institute said that the institute will lay off about 10% of its employees this round.

It is reported that the compensation standard for this layoff is "N (one month's salary for each year of service) + 2", plus payment of social security in September. For some employees whose contracts have expired and will not be renewed and fresh graduates, the compensation is "N+1" .

Xintong responded to layoffs of 80%: pure rumors!

In October, self-media news claimed that Xintong Semiconductor was laying off employees, with 80% of its employees being laid off. In this regard, the reporter contacted Li Yang, co-founder of Xintong Semiconductor. He responded that the company has indeed made optimizations due to business adjustments recently, but large-scale layoffs are purely rumors.

Moore thread launcher optimization

On November 6, Moore Thread founder and CEO Zhang Jianzhong sent a letter to all employees of the company, mentioning that a regular job optimization will be carried out to achieve better job matching and job salary matching efficiency, and focus more on the GPU core Research and development is expected to be completed within one week (the week of November 6).

According to people familiar with the matter, Moore Thread has been developing rapidly for three years and currently has nearly 1,000 employees. This personnel optimization is the result of normal performance appraisal because the company needs to focus on strategy.

TCL subsidiary Moxing Semiconductor is rumored to be disbanded on the spot

On November 21, it was reported that internal personnel of "Moxing Semiconductor", a wholly-owned subsidiary of TCL Holdings, revealed that "the company was disbanded." The layoffs affected nearly a hundred people, including dozens of people at the Guangzhou headquarters, as well as branches in Shanghai and Shenzhen. There are dozens of people in the center. The compensation plan is N+1, and the entire company, including software, IC, and even administration, will be dissolved.

It is understood that Moxing Semiconductor was established in March 2021 with a registered capital of 50 million yuan. The legal representative is Yan Xiaolin and is wholly owned by TCL Industrial Holdings Co., Ltd.

Alibaba Damo Academy's Quantum Laboratory Will Layoffs Largely? official response

In November, there were market rumors that due to budget and profitability reasons, Alibaba Damo Academy had made significant layoffs in its quantum laboratory and might lay off the entire team. Rumors indicate that due to budget and profitability reasons, Alibaba's Damo Academy Quantum Laboratory may have been disbanded, with a total of more than 30 employees laid off, and many members of the laboratory have successfully joined other companies.

Alibaba DAMO Academy responded on November 26 that in order to further promote the coordinated development of quantum technology, DAMO Academy has teamed up with Zhejiang University to develop quantum technology, donated quantum laboratories and transferable quantum experimental instruments and equipment to Zhejiang University, and donated them to other universities. and scientific research institutions. However, Damo Academy did not respond to the issue of personnel disposal.

Chuanfu Ruiwei is disbanded, and layoff compensation will be paid in N+1 installments

In early December, employees of Forui Microelectronics posted a message saying that Forui Microelectronics was disbanded! Now the salary cannot be paid, and the N+1 compensation will be paid in installments from the second quarter of next year. In June this year, there was news that Fuluiwei was delaying the payment of year-end bonuses, and employees and headhunters were persuaded to quit.

In response to this rumor, reporters contacted Foruiwei, but the other party refused to respond.

Foreign companies in China: 

Abolition of mainland China teams or withdrawal from the market

Arm Technology was revealed to have laid off nearly a hundred employees in February, and more than 70 software engineers in mainland China were laid off in December.

On February 11, according to three familiar sources, Arm China (Arm Technology) laid off 90-95 employees to cope with this year's challenging business prospects and conditions. Most of those said to have lost their jobs were R&D engineers.

On December 18, people familiar with the matter revealed that Arm laid off more than 70 software engineers in mainland China and would transfer some positions outside mainland China. A person familiar with the matter said that about 15 laid off employees will be transferred to different positions to work on projects related to mainland China.

Intel Taiwan lays off 10% of its workforce? Officials say they will not comment on rumors

On July 17, it was reported that Intel would initiate layoffs in Taiwan, China, and would lay off hundreds of people. Currently, Intel's Taiwan branch has about 1,000 employees. If 100 employees are laid off, the proportion will reach 10%. Intel hopes to cut costs by $10 billion per year by 2025.

Qualcomm lays off employees in both mainland China and Taiwan

In September, market news broke that Qualcomm had begun layoffs in both mainland China and Taiwan. Among them, the number of layoffs at Qualcomm's R&D center in Shanghai may reach 20%, but the compensation for layoffs is expected to reach N+7. Taiwan will lay off 10% of its employees and the compensation is expected to be N+3.

Qualcomm responded that given the continued uncertainty in the macroeconomic and demand environment, the company expects to take further adjustment measures to achieve continued investment in important growth opportunities and business diversification. Although the main measures are expected to include layoffs, the market rumors of “massive layoffs,” “office closures,” and “evacuation of Shanghai” are exaggerated.

Micron in Taiwan, China is rumored to have laid off employees without warning, and thousands of employees will be affected.

In February, there were reports that the memory giant Micron had also begun layoffs and salary cuts. Some employees in Taiwan, China, recently broke the news that they had begun layoffs. They pointed out that Micron Taiwan, China, laid off employees without warning and "leaved at ten minutes' notice", which aroused concern from government departments. Micron Taiwan, China, issued a statement on February 10, confirming that it will reduce the number of global employees by approximately 10% this year through voluntary resignations, staff reductions and reductions in external recruitment. However, Micron Taiwan did not disclose the estimated scale and number of layoffs.

Marvell is rumored to be laying off its NAND Flash control IC team in Taiwan, China

Following the dismissal of the team in mainland China, in November, market news said that due to the poor NAND Flash market conditions and the restrictions of the Sino-US trade war, there were rumors in the industry that Marvell would dismiss the NAND Flash control IC team in Taiwan, China, and this has taken effect recently.

The industry speculates that although Marvell has not completely withdrawn from the NAND Flash control IC business, the dismissal of the NAND Flash team in Taiwan indicates that the storage business is still difficult.

AMD responds to layoffs in mainland China: 

rumors are untrue, minor optimization and reorganization

In October, there were rumors that AMD was about to lay off a large number of employees in mainland China, with an estimated layoff ratio of 10 to 15%. Based on the total number of AMD employees in Greater China, the number of layoffs may be close to 500.

Regarding the Internet rumors, AMD responded: "The Internet rumors are untrue. Based on the adjustment of the company's strategy, the company has recently made a small optimization and reorganization of the organizational structure."

British chip company Graphcore exits the Chinese mainland market and lays off most of its employees

On November 23, it was reported that British chip design company Graphcore would lay off most of its employees in mainland China and stop sales in mainland China.

Graphcore confirmed the decision, citing the recent escalation of U.S. export controls to China. "Unfortunately, this means we will significantly reduce our operations in mainland China."

Foreign companies: 

mergers, acquisitions and business restructuring, accelerating strategic layoffs

Intel launches five rounds of layoffs to accelerate company strategic deployment

At the beginning of the year in January this year, Intel laid off hundreds of jobs in California and warned that layoffs would continue.

In August, it was reported that Intel would lay off 140 employees in California, including 89 employees at Intel's Folsom campus and 51 employees in San Jose.

In December, Intel said it would continue a multi-billion-dollar cost-cutting plan started last year and planned to lay off 311 employees at two campuses in California, involving about 76 employees at its Santa Clara headquarters and about 235 employees at Folsom. employees, the layoffs are expected to take effect at the end of 2023. The approximately 235 employees laid off in Folsom are Intel's fifth round of layoffs this year.

U.S. chip equipment giant Lam Group announces layoffs of 1,300 employees

In January, Tim Archer, CEO of Lam Research Corp., one of the three major U.S. chip manufacturing equipment suppliers, said on a conference call that the company would lay off about 1,300 people worldwide, which is about accounting for approximately 7% of its workforce.

Lam Group said its chipmaker customers are slowing down production lines, delaying the construction of new factories and reducing improvements to existing facilities. Electronics companies that buy chips are hoarding huge amounts of unused parts, and that's spreading throughout the supply chain.

Lam expects charges related to layoffs and facility reductions of $150 million to $250 million.

Qualcomm starts layoffs simultaneously in regions other than mainland China and Taiwan, China

In addition to the above-mentioned layoffs in mainland China and Taiwan, Qualcomm will also conduct layoffs in Israel, the United States and other places in 2023. In January, there was news that Qualcomm would conduct a new round of layoffs in Israel, cutting dozens of jobs. In March, it was reported that Qualcomm cut 79 jobs from its San Diego headquarters in February, with the layoffs mainly concentrated in employee engineering, administrative and legal departments. In April, people familiar with the matter revealed that Qualcomm will announce a company-wide layoff of 5% in its quarterly results report on May 3. Among them, the company's mobile department will lay off 20% of its employees. In August, Qualcomm once again showed that smartphone demand remains weak and the company is taking steps to reduce expenses and begin a new round of layoffs.

Synopsys plans to cut more than 100 jobs in the U.S. Bay Area

In January, Synopsys stated in a letter to the state EDD (California Employment Development Department) that it would lay off 102 employees in California, including 102 employees at 102 East Middlefield Road in Mountain View and its Sunnyvale factory. It is scheduled to take effect on March 31. Documents show that the vast majority of employees affected by the layoffs are technical engineers, designers and software experts.

Micron Technology begins layoffs in Singapore after announcing 10% layoffs

Micron Technology announced in December 2022 that it would cut 10% of its employees globally, and would begin layoffs in Singapore in February 2023. It is reported that Micron employs more than 9,000 people in Singapore, but it has not disclosed how many employees it will reduce in Singapore and other related details.

There have since been reports that Micron Technology will expand its layoff ratio to 15%, and about 7,200 employees will be laid off.

Schindler Technology (TTM) plans to close three factories and lay off 750 people

In February, TTM Technologies said it planned to close three manufacturing facilities to improve overall plant utilization, operational performance, customer focus and profitability. TTM expects a total of about 750 employees, or 5% of its global workforce, to be laid off as a result of the closures.

Samsung Electronics' U.S. semiconductor subsidiary is rumored to lay off 3% of its employees

In March, it was reported that Device Solutions Americas (DSA), the semiconductor subsidiary of Samsung Electronics in the United States, had also recently laid off employees. Samsung Electronics DSA issued a notice to all employees in February this year that "due to economic instability, it plans to lay off 3% of its employees." It is understood that DSA has a total of 1,200 employees, and approximately more than 30 people will be laid off.

It is rumored that Kelei, a major American semiconductor equipment manufacturer, will lay off 3% of its global workforce and engineers will be dismissed without notice.

In the same month that Samsung's U.S. semiconductor subsidiary laid off employees, the industry revealed that Kelei launched a layoff plan. According to reports, Kelei's South Korean branch is currently screening departing employees. Some candidates for resignation also raised procedural issues, saying: "Without any prior notice, I was called to the head office on the grounds of annual salary negotiation and was advised to resign."

The report pointed out that Kelei will lay off about 3% of its employees not only in South Korea but also globally.

Following mainland China, Marvell announced its first layoff of 320 employees in the United States.

In March, it was reported that Marvell was laying off 4% of its employees in the United States, about 320 people, in response to the industry downturn. The company had notified employees. Marvell has previously downsized its workforce in mainland China, and the latest move marks its first large-scale layoffs in the United States.

Israeli chip maker Valens plans to streamline its development platform and lay off 15% of its employees in each department

On June 8, 2023, Valens Semiconductor announced that it would streamline its development platform to optimize R&D resources and revised its full-year financial outlook for 2023. The plan, which will be completed by the end of the third quarter of 2023, includes cutting 15% of its workforce across various divisions, resulting in annual operating expense savings of approximately $9 million.

NWF, the UK's largest wafer fab, will lay off 100 people

In September, Newport Wafer Fab (NWF), the UK's largest wafer factory, said it would lay off 100 people. The company blamed UK government restrictions for its decision to cut 100 jobs amid uncertainty over its future ownership.

In 2021, NWF was sold to Dutch chip manufacturer Nexperia for 63 million pounds, which was acquired by the Chinese mainland company Wingtech Technology in the same year. The deal was rejected at the time, but British politicians late last year demanded that Nexperia divest at least 86% of NWF.

NAND Flash factory Kioxia is rumored to plan to lay off employees and encourage early retirement

The storage market continues to be sluggish, and Kioxia has suffered losses for three consecutive quarters. There are rumors in the industry that the company is considering layoffs and reorganizing its operations through structural adjustments.

According to people familiar with the matter, after explaining to the labor union on September 21, Kioxia will recruit employees who wish to retire early among regular employees over 56 years old, and will increase pensions and provide reemployment support to the candidates.

RISC-V startup SiFive cuts 20% of its staff across all departments

Chip design startup SiFive said on October 24 that it had laid off about 20% of its workforce, or about 130 people. SiFive stated in a statement that as we identify and focus on the largest opportunities, SiFive is making strategic adjustments to all of our global teams to best meet the rapidly changing needs of our customers.

Storage industry downturn, SSD manufacturer Solidigm rumored to start layoffs

Now the storage industry downturn has spread to SSD manufacturers, with Solidigm confirming in October that it was conducting recent layoffs due to the industry downturn, describing them as moderate layoffs but declining to provide further details. Solidigm said the company will provide support and severance packages to colleagues who are leaving.

ON Semiconductor announces 900 layoffs, predicts weak fourth quarter due to slowing demand for electric vehicles

At the end of October, chipmaker Onsemi expected tepid fourth-quarter results and said it would lay off about 900 people.

ON Semiconductor supplies chips used in electric vehicle powertrains and helps with driver assistance systems such as cameras and sensors. It has laid off 1,360 employees this year and forecast revenue of US$1.95 billion to US$2.05 billion, below expectations of US$2.18 billion.

Chip IP supplier Imagination plans to lay off 20% of its staff

In November, people familiar with the matter revealed that chip IP supplier Imagination Technologies plans to lay off 20% of its employees. According to an internal source, the company said it is cutting jobs due to the challenging "business environment" over the past 18 months.

The layoffs are company-wide and every department will be affected, sources said. As many as 130 jobs in the UK are at risk. As of the end of 2022, Imagination had 559 employees.

After Broadcom acquires VMware, it will lay off more than 2,800 people worldwide, and the number is still growing

Broadcom announced the completion of its $69 billion acquisition of VMware on November 23. Since then, the official number of layoffs has risen to 2,838. The data comes from WARN (Worker Adjustment and Retraining Notification) notices submitted by Broadcom in multiple states in the United States. However, state WARN laws typically only require companies to file if 100 or more employees are affected, and the numbers are incomplete.

Some VMware insiders said that the total number of layoffs will be between 10,000 and 20,000. Many of the layoffs were staggered over a period of up to nine months.

ADI will lay off hundreds of employees in California, USA in January 2024

In December, it was reported that the latest round of layoff plans disclosed by technology companies such as ADI (Analog Devices), ForgeRock, Nextdoor and Flex would eliminate 350 jobs, according to official notifications submitted to the California Employment Development Department (EDD).

Among them, ADI is laying off 111 employees at its Rio Robles office building in northern San Jose. The layoffs are expected to take effect on January 12, 2024.

In fact, for the electronics industry, not only semiconductor design, equipment, and manufacturing have been affected by the cold, many such as automobile and consumer electronics terminal companies, Internet technology giants, and panel manufacturers have laid off employees in 2023 to carry out effective and rapid restructuring. To reduce costs, reporters will conduct separate summaries later.

In 2023, the semiconductor industry has experienced "continuous ups and downs". It is gratifying that storage prices have gradually recovered in the second half of the year. Many industry market research institutions and companies have also given optimistic predictions for next year, believing that the industry will enter recovery next year. cycle, but the extent of the industry's recovery will remain to be seen.

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