Tuesday, January 31st 2023
Sanctions-hit YMTC Laying Off 10 Percent of its Workforce
YMTC, China's premier NAND flash and DRAM memory manufacturer, is reportedly laying off 10 percent of its workforce as it sees demand drop from loss in sales to major American customers. The company has a cutting-edge lineup of NAND flash memory at competitive prices and quality enough to meet Apple's standards. It had scored a major NAND flash supply deal with the iPhone maker in 2020, which fell through in 2022 as the U.S. government placed trade embargoes on Chinese chipmakers. The company continues to supply NAND flash chips to many of the popular Chinese smartphone and PC manufacturers. YMTC identified 10 percent of its workforce that it categorized as "underperforming," and laid them off. This even ended incentives such as discounted apartments. One terminated employee was reportedly asked to cough up RMB 400,000 (this discount) to keep their home.
Source:
South China Morning Post
9 Comments on Sanctions-hit YMTC Laying Off 10 Percent of its Workforce
It is no longer competitive wage wise, the reason it is still a great choice for production is because everything is crammed next to each other in Shenzhen and they currently have the know how.
The China exodus started years ago, as it's a the demographics will make it impossible to keep the system going as it is now within this and 10~15 years.
Half the workers doing the jobs of the people in their prime now will be available to replace them.
That's going to be difficult and very expensive.
The current political climate sped things up a bit.
I have a roll of tinfoil that is insisting a lot of the political troubles are being stoked by huge multinationals who want to ditch China because of the above and want an excuse and tax payer money to get out of there.
And Here I am writing political crap on a hardware forum even though I fled here because it's bad for my mental health.