HSIP lays off 2,000 workers from January-June

Ruby Ying, The China Post

The recent economic sluggishness has sent a shockwave through the high-tech industry. Companies in the Hsinchu Science-based Industrial Park (HSIP) laid off over 2,000 workers during the first half of this year.

The figure is the highest in the HSIP’s 20-year history, leading to predictions that the local high-tech industry, particularly the semiconductor sector, will continue to see slow growth in the near future. It is widely expected that the high-tech industry will release more professionals and laborers in the latter half of this year. The HSIP administration noted that since the beginning of this year, a host of companies in the park has embarked on plans to streamline personnel, including Acer Corp. firing 520 foreign laborers and 300 local laborers, Mosel Vitelic laying off 90 workers, and scanner producer Mustek sacking 100 workers — with its production lines moving to mainland China. As of the end of June, the number of laid off workers at HSIP has amounted to 2,000 people, doubling the figure for the same period of last year. The HSIP administration revealed that most of the laid off workers were administrative personnel or workers on production lines. Despite cutbacks in personnel, HSIP Administration stressed that the total employment of the park has been maintained at the level of 102,000 people, with IC design house and biotechnology companies providing most new jobs. Compared with other cities on the island, Hsinchu still has a relatively low unemployment rate.