Memory Chip Makers Look to Reduce Costs by Asking Workers to Take Unpaid Leave

Paul_Lilly

Memory module makers continue to suffer through what some analysts suggest is the worst the DRAM market has been in 15 years with chip manufacturers posting record high losses. To stop the bleeding, most module makers have already cut production in an attempt to drive prices back up, and while that has been met with some success in niche markets (DDR prices are up 30 percent), slumping demand paints a grim outlook for memory makers in the immediate future.

The solution? Send home your workforce without laying them off. That's essentially the strategy some Tawain DRAM and memory module makers are trying to take in an attempt to reduce operating costs, according to DigiTimes. Rather than hand out pink slips, the tech news outlet reports that chip makers are asking employees to take time off without pay.

This isn't an isolated scenario, either. DigiTimes claims that Nanya Technology, Powerchip Semiconducter Corporation (PSC), and ProMOS Technologies have all taken "measures to encourage employees to voluntarily take one work-day off per week without pay in order to help the companies reduce operating costs."

Image Credit: Nanya Technology

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