Chip orders revive TSMC production lines

World's largest contract chip maker ended employee furloughs due to rush orders for chips

Taiwan Semiconductor Manufacturing (TSMC) has ended unpaid leave for employees due to rising chip orders, the company said in a statement Friday.

The world's largest contract chip maker, considered a bellwether for the technology industry due to the wide range of products the chips it makes go into, said all employees will start a normal five-day work week next month.

"However, as the fundamentals of the economy are not significantly improved, we should remain cautious and watchful of our costs," the company said in a letter to employees.

The global recession prompted a number of Taiwanese companies to cut back work days and salaries as demand slowed last year. Chip workers at TSMC had seen their work week reduced to four days from five along with their pay.

The chip giant is the second major Taiwanese company to announce improvements for workers.

Hon Hai Precision Industry, the world's largest contract electronics manufacturer that assembles products ranging from Apple's 3G iPhone to Sony's PlayStation 3, is hiring again in China after months of layoffs.

The company, which operates under the trade name Foxconn, said early this month it is increasing its payroll in China by 5 percent because the downturn has not been as bad as expected. The company employs between 300,000 and 500,000 workers in China.

TSMC also last week revised up its first quarter financial outlook due to what it called increased "rush orders," the term for unanticipated orders for chips. However, TSMC cautioned that those rush orders do not necessarily indicate a long-lasting trend.

The chip maker raised its first quarter revenue forecast to between NT$36 billion (US$1.06 billion) and NT$38 billion from previous guidance of NT$32 billion to NT$35 billion.

Other chip makers have also reported slightly better prospects recently, all tied to demand for 3G mobile phone network equipment and handsets in China.

Texas Instruments, Altera and Xilinx of the U.S., and MediaTek of Taiwan have all recently raised their quarterly revenue guidance due to increased 3G chip demand from China.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags processorschipstsmc

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Dan Nystedt

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?