NEC, the world's third largest chipmaker, looks set to cut 700 jobs at its Scottish plant in a restructuring move following the global downturn in the semiconductor market.
"Two months ago we cut staff in the US and we're now examining how to restructure the UK as well as China and other areas," NEC spokesman Daniel Mathieson told Reuters.
He indicated that he could not rule out reports that 700 of the West Lothian plant's 1570 staff would lose their jobs, as had been reported by Japanese publication The Nikkan Kogyo earlier today (Tuesday). Details of NEC's restructuring plans are expected towards the end of the month, Mathieson added.
Prices for some memory chips have dropped 90 per cent in the last 12 months, below the cost of manufacture for some makers, and a recent report by IDC said the market would fall by another 40 per cent in 2002.
NEC is looking to reduce its production of dynamic random (DRam) access memory chips and is scrapping production of 64-bit DRam chips. The company said in April that it would cut 700 staff at a US DRam plant and, according to reports, will now end Dram production at its West Lothian factory by September.
The Scottish IT manufacturing industry has already been hit this year with the loss of 800 jobs at a Compaq factory and the closure of Motorola's Bathgate plant with the loss of around 3000 jobs.
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