Nov
14
Written by:
Russ Henke
11/14/2008 5:37 PM
With the recession spreading to the semiconductor sector, the impact on Electronic Design Automation (EDA) vendors can’t be far behind. And the woes of the semiconductor companies are making news.
Applied Materials, National Semiconductor and
AMD, the latest in the chip sector to feel the economic slump, announced cuts in their work forces and also announced downbeat financial projections.
The Wall Street Journal reported today (November 14, 2008) as follows:
Applied, considered "the sales leader among makers of tools for manufacturing chips, said it will cut 1,800 jobs, or 12% of its work force, through a combination of attrition, voluntary severance and other reductions." The company "announced the planned reductions -- expected to reduce expenses by about $400 million a year -- along with a 45% drop in profit for the fiscal fourth quarter ended October 26, 2008 and said it expects further declines in sales and orders in the current quarter."
National Semiconductor "said it will cut nearly 5% of its work force, or about 300 positions, in an effort to save about $50 million in annual expenses." The maker of "chips used in a variety of products that include computers and televisions, said it now sees revenue for the fiscal second quarter ending November 23, 2008 of $420 million to $425 million, well below the forecast it gave in September of $470 million to $480 million."
Advanced Micro Devices Inc. (AMD) "has already changed CEOs, announced 2,100 layoffs this year and is cutting back on expenses. Travel is scrutinized more and even cell phone and computer upgrades for employees are being delayed." Moreover, "slumping sales, big layoffs and devastated stock prices are becoming the norm," according to the Associated Press. "Semiconductor companies' fortunes say a lot about the health of other tech industries, because slowdowns in chip sales can reflect slumping demand for everything from personal computers to cell phones."
And EDA vendors are surely feeing the pinch.