By James Rickman, SVS
Overall, the semiconductor industry revenue worldwide fell to about $190 billion in 2009, a 22% decline from 2008 revenue of $250 billion. It is common now to hear the words "jobless recovery" bantered about for many industries. However, this should be the case for the semiconductor industry going forward even further supported by LAM Research, Novellus, and Intel better than expected earnings reports. Likewise, companies such as Hewlett Packard (HPQ), Acer and DELL have all reported PC sales improvements going into the holiday seasons.
Today, there are currently small numbers of positions being filled every day. It is not a large number, but there is hiring going on. Most of these positions fall into one of two broad categories. The first category includes positions that are high level and strategic in nature. A company needs to replace a CEO or bring on a CTO to focus development. These type positions tend to be filled whether times are good or bad. The second type ties more closely to the level of business. As business strengthens (or appears that it might) companies may add technical resources (designers, apps engineers, etc.), sales staff, or operations personnel.
There is a great deal of caution these days in adding staff due to the uncertainly about the level and stability of future demand. For many fabless companies, this problem is exacerbated by dwindling cash with a dim outlook for future funding rounds. It is "hang on to what you've got" and try to stretch the current organization as much as possible. However, there are fabless companies with significant cash reserves and strong demand that are adding staff.
As with the "it depends" above, much of hiring depends on the supply chain segment, product technology, and end-market focus. Consumer spending will remain somewhat depressed due to high unemployment, low housing pricing, and relatively low consumer confidence. IT budgets are modestly down in 2009, but companies are not spending at the rate of their budgets. As the inventory correction swings in the opposite direction, expect component prices to stabilize through the remaining year (2009-2010).
About Author
Mr Rickman is a respected analyst, innovative thinker and new media expert with over 30-years experience, published worldwide. He holds advanced business and technical degrees. For more information visit http://www.sustainablevirtualbiz.com/ or email http://us.mc595.mail.yahoo.com/mc/compose?to=sustainablevirtualteams@yahoo.com
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