Japan-based leading passive component maker TDK is planning to cut about one-third of its workforce in China, according to market sources, meanwhile Taiwan-based Yageo and Cyntec have opted to take other measures to reduce the burden of labor costs in the region.
Yageo will focus on training to keep a staff of experienced employees thereby increasing production efficiency while Cyntec is taking a cautious approach to recruitment as well as reducing overtime hours, noted the sources.
According to most Taiwan industry players, the passive component segment will be relatively stable compared to others during the economic crisis. Additionally, increasing labor costs in China were reflected in 2007 financial reports, and so will have a minimal impact in 2008.
Article translated by Meiling Chen
