A slowdown in customer orders has forced all staff at OSAT Amkor Technology's production site in Shanghai, estimated at about 5,000 people, to take vacation for about a week, according to local media reports in China.
Amkor Assembly & Test (Shanghai) issued an internal notice on February 9 stating that the adjustments were made to save operating expenses, the reports cited sources familiar with the matter as indicating. A leave of absence has been requested for production staff from February 27 to March 6, and for office staff from February 27 to March 3.
Amkor's Shanghai site has seen significant reductions in orders from its Chinese customers, including Yangtze Memory Technologies, according to industry sources. In response to unfavorable market conditions, the Wuhan-based memory chipmaker has reportedly begun layoffs and output cutbacks.
