Tl,NXP, Micron and other chip manufacturershave been cutting down the Chinese R & D team,what signal is released?

In the context of the US government's continued suppression of China's semiconductor industry, a number of US chip design manufacturers have cut the Chinese R & D team, especially after the US proposed new regulations on semiconductor export control to China in October last year, many US technology companies have a trend of supply chain transfer.

It is worth noting that the decision of the head manufacturer to "move out" of China is actually the same.

Many large factories have cut their R&D teams in China

TI

On November 20, it was reported that Texas Instruments had abolished the MCU research and development team in China, only retaining the market and application, and moved the original MCU product line to India. All team members were dispersed to other product lines, nominally keeping their positions and salaries the same. Employees were given a choice: accept an offer to work on another product line, or offer to leave.

Marvell

In October last year, Marvell announced the elimination of most of the China research and development team. The Shanghai R&D Center was the hardest hit area, and the Design Verification team of SPG department, ASIC department, PHY department, and Engineering of IT department were all cut down. The Infrastructure team and GREWS department in Shanghai have also been partially cut, with some IT support staff retained. In addition, Marvell's Chengdu SPG division and GREWS division were all cut. Research and development units in Beijing and Chengdu appear to be unaffected.

In March this year, sources revealed that Marvell decided to cut all of the remaining China research and development team, which is related to the long-term sanctions of the United States on Chinese chips. In particular, it was affected by the new U.S. regulations on China on October 7. As for the compensation package, it may be the same as the "N+3" compensation package Marvell proposed when it laid off employees last October.

Micron

In January last year, Micron (MU-US) dissolved its research and development center in Shanghai and offered some employees skilled immigration status to the United States, and some core employees could bring their families to the United States.

AMD

In October this year, AMD carried out a "small" organizational structure optimization and restructuring, and AMD Shanghai R & D center employees were interviewed (layoffs), but the scale of layoffs was N+1+2. At present, only the NCG department of AMD China seems to have more employees interviewed. If the compensation plan is signed as "N+1+2" on the spot on the same day, the social security will be handed over to the end of the year; If the contract is not signed on the spot on the same day, the compensation is "N+1+1", and the social security is paid at the end of November.

NXP

In June last year, it was reported that NXP had announced the closure of the APS (Advanced Power System) R & D department in China, and the original R & D task in China was transferred to Taiwan and abroad. The R&D personnel placement program is a two-way match with other departments in the company, and the employees who are successfully matched are selected for internal transfer. In addition, there is no redundancy compensation program.

On Beauty

In April 22, ON Mei issued a notice letter saying that the local global distribution center in Shanghai was forced to close and the related business was moved to Singapore.

Dachang group evacuation reasons

In recent years, under the multiple effects of the COVID-19 epidemic, chip shortage, international situation and high inflation in the US economy, overseas chip giants are accelerating the decision to withdraw their research and development departments from China.

Chip vision Xiaobian will analyze from the following four aspects, why do big factories choose to withdraw from China?

Policy: In October last year, the US Department of Commerce's Bureau of Industry and Security (BIS) announced new export control rules for advanced computing chips and semiconductor manufacturing equipment, restricting China's ability to buy and manufacture high-end chips, and listed Chinese GPU companies and their subsidiaries on the entity list. After the announcement of the new regulations, many American technology companies have a trend of supply chain transfer, of which Vietnam, India, the Philippines and other places have become new transfer positions.

In addition, the United States has drafted proposals to push American companies to move operations or key suppliers out of China, including tax breaks, new rules and elaborate subsidies that prohibit companies from expanding semiconductor manufacturing in China for 10 years if they receive subsidies to build plants in the United States. This regulation is undoubtedly hindering the pace of development of some large factories.

Market factors: In the face of declining demand and fierce market competition, companies will invest resources in markets with more potential and growth.

Cost considerations: It is understood that the wage level, such as the Pearl River Delta basic wage is about 4000, Shenzhen basic wage may be more than 5000, Southeast Asia's Vietnam basic wage is close to 2000, Myanmar 1200-1500 yuan, Cambodia slightly lower, and Bangladesh, the wage is less than 1000, in labor costs, raw material costs, production costs and other factors. Other areas are more economically viable.

Company strategic development direction: Considering the current chip supply chain layout, the head company will prefer to establish more supply chain diversity on a global scale to reduce dependence on specific regions.

Release what signal?

As TI, NXP, Micron, these well-known head manufacturers have eliminated their research and development teams, there has been a certain scale of "vacuum" area in the market. In this case, for the Chinese mainland local enterprises is an opportunity, must be top, of course, this is also a rare development opportunity for them. In the early years, there was a clear gap between Chinese mainland enterprises and international large factories, whether it was advanced packaging technology, or market influence and share. But in recent years, local companies have grown rapidly and the gap has narrowed a lot, which is already reflected in the global revenue rankings.