Singapore Chipmakers Are Reportedly Cutting Jobs Due To Trade War
Chipmakers in Singapore reportedly started cutting jobs as the industry is slowing down amid trade war, Reuters reports Wednesday, July 24.
Reuters found out that UTAC, a Singapore-based chip manufacturer, started cutting jobs in its facilities. In total, the company might reduce up to 20% of its 1,700 employees based in Singapore.
AMS, which supplies Apple in the country, is also cutting jobs in Singapore in 2019. Although the exact amount of layoffs has not yet been confirmed, local sources cited by Reuters reported as many as 600 layoffs.
According to Ang Wee Seng, executive director for the Singapore Semiconductor Industry Association, the current drop represents something different from the previous ones. The executive said that the industry should prepare for the worst.
Chip industry comprised almost a third of Singapore's manufacturing output in 2018. Moreover, it makes 76% of its overall electronic production.
Singapore’s June export figures visibly decreased in June. Electronic exports dropped 31.9% in June after losing 31.6% in May. The biggest decline in overall shipments was registered for Hong Kong (-38.2%), Japan (-23.2%) and South Korea (-22.7%).
Singapore’s economy, which is tied to trades, saw a sharp decline in Q2 2019. The analysts cited by Bloomberg believe that the country is at risk of recession. Its exports have been gradually decreasing in 2018, while in 2019 the contraction is even more obvious.