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In AMD's case they are up against a very big competitor..Intel. Specifically they killed Intel in the server market a few years ago with their Opteron processor. Since then Intel has taken back the server market, and gained Apple's CPU business for their Macs.
It is common for companies to use downturns as a legal excuse to get rid of workers who have lower productivity or are disruptive. The workers cannot bring legal action because the company can say that it was an economic necessity and a whole group of workers were let go at the same time.
Semiconductor industry is facing lot of challenges. Profitability is the main concern. Five years from now there will not be any AMD. I am not against AMD. TI, AMD,NXP,ST,Freescale etc all these companies design great chips but make very less money, infact most of them loss making. As we moved down to 90nm the production cost is steeply increasing, too much competition. Microprocessors is the only product category where competition is less and hence Intel is making good money. There are too many companies small and big making rest of the ICs and the competion there is severe which leads to more aggresive price reduction and hence less/no profitability. In future many spin-offs, aquisions, merger, closure will happen. Only biggies will servive.
Hi sekapr,
You are correct.. All the companies are designing good chips with can be used for many applications... There are many competitors in the market & manufacturing cost also increasing as technology going down. Now a days u need to take care of ur yield also, for that we need to improve(DFM, OPC..etc) our design... Comp like AMD, Conexant, Freescale are started laying off the ppl just because of its sales...
Its 1600 job cuts in AMD. heard from one of AMD friend who is working in Japan, only job cuts in USA. AMD announced before cutting the jobs. few companies are taking advantage of market down fall. Even sasken in bangalore laid of lot of engineers in vlsi..Inflation is serious issue now every where either in IT or with commodities.
against of these i heard that AMD -hyderabad,,, has lot of openinings and they r also recruiting people,,,what this means,,,is AMD not laying off in India because of low labour cost
In today's world more the creativity working people are wished to work wrt requirements n project once u do not have projects ur req are still old wrt client the profits will decrease ...........................The only place where u do not loose job is R&D..............other all divisions of all MNCs are depend on clients if no clients no jobs.....So for every one learn to eb creative....................the 500 people if creative the company would consider starting new self working projects since they are depended on others they push off people when they dio not have projects.........."Even if u learn little be creative with it"
hi gvinu
am able to understand your words wrt to service based organisation,,,,,,
AM not able to get the client concept wrt AMD....
it is a product based company but not a service based,,, how come a client theory will be effective for a product based company
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