Sanctions-hit YMTC Laying Off 10 Percent of its Workforce

[btarunr]

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.



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[maxfly]

That's cold blooded.

 

[TumbleGeorge]

How will be priced next generations iPhones when has not any cheap chinese manufactured parts and assembling. $2500 for start price?

 

[Wirko]

How will be priced next generations iPhones when has not any cheap chinese manufactured parts and assembling. $2500 for start price?

Actually, and regardless of political tensions, China is slowly becoming too expensive for things like putting together electronic products. Manufacturing is moving to Vietnam, India and elsewhere.

 

[TumbleGeorge]

slowly

Keyword. The difference when it takes many years and when it happens suddenly with a big jump.

 

[SOAREVERSOR]

Actually, and regardless of political tensions, China is slowly becoming too expensive for things like putting together electronic products. Manufacturing is moving to Vietnam, India and elsewhere.

Yeah this. Also Bangladesh, Thailand, and the Philipines.

 

[kondamin]

Keyword. The difference when it takes many years and when it happens suddenly with a big jump.

Slowly started 30 years ago.
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.

 

[TumbleGeorge]

tax payer money

Yes.

 

[Wirko]

Wow. The generations that feel the need for a new phone every year are quite scarce compared to those that need a new phone every 5-6 years.

 

[regs]

An invisible hand of "free market"