<font color=red> SEH AMERICA CUTS 172 WORKERS
Friday, September 20, 2002
By JULIA ANDERSON, Columbian staff writer
With no clear recovery in sight for the worldwide semiconductor industry, SEH America is laying off 172 of its workers. The reduction, announced Thursday, will take the Vancouver company's work force to 935, down 15 percent from most recent levels and down 33 percent from the 1,400 employed there a year ago.
SEH makes silicon wafers used in the production of computer chips.
Workers affected are primarily production employees earning an average of $14 per hour at the company's facility at 4111 N.E. 112th Ave. Some salaried and administrative people also are losing their jobs.
As recently as two weeks ago, SEH officials said they expected no changes in employment levels at Vancouver as the company waited out the lingering recession in semiconductors, the worst downturn in 20 years.
"The industry has not recovered as was anticipated," Julie Branford, SEH director of human resources, said. "Hopefully, if market conditions improve, we would be able to call back those losing their jobs."
Branford said the laid-off workers are being offered severance benefits and will be able to take advantage of retraining programs funded from federal trade act legislation. Earlier this year, 80 SEH workers took advantage of the program to retrain as medical technicians.
Industry analysts had hoped for a recovery this fall in demand for computer chips, but news this week is not encouraging.
Chip equipment makers in North America saw orders fall slightly in August from July.
As well, orders for semiconductors, used in all manner of electronics, from personal computers to video games to cell phones, declined 5 percent in August from July.
"The overall trend (in chips sales) is not providing a signal for substantial further improvement this year," said Dan Tracy, director of industry research for SEMI (Semiconductor Equipment and Materials International) in a report this week.
SEH provides silicon wafers used in chip making to most of North America's major semiconductor houses.
"We certainly hope that things would change, but that could be in the first quarter 2003 or it could be longer," Branford said. "If consumers don't feel (generally) comfortable spending their discretionary income, they certainly won't be buying new cell phones. Unfortunately, it's a terrible cycle."
SEH America is owned by Shin-Etsu Chemical Co., Tokyo, Japan.
The company reported net sales of $5.8 billion for fiscal year 2002 ending in March. The company had net income of $517 million, up 1.2 percent from the year earlier.
Shin-etsu employs 16,000 people worldwide.
SEH Layoffs
WHAT: 172 workers will lose jobs at SEH America.
PRODUCT: The plant makes silicon wafers used in computer chip production.
EMPLOYMENT NOW: 935; down 33 percent from 2001
MOST AFFECTED: Production workers
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INTC buys wafers from SEH.
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