According to industry sources on the 7th, Solidim notified 98 employees at its headquarters in Rancho Cordova, California, of their termination. Some employees are expected to leave the company this month. Solidim plans to provide severance pay and support for reemployment.
A Solidim representative stated, "Due to the long-term downturn in the semiconductor industry, we have executed workforce reductions in all business sectors and locations," expressing gratitude to the team members who made meaningful contributions during their time at the company.
Global economic slowdown has led to a decline in demand for memory chips. As a result, SK hynix, the parent company of Solidim, reported an operating loss of KRW 1.7012 trillion in the fourth quarter of last year, the first loss in a decade. The loss in the first quarter of this year increased to KRW 3.4023 trillion. The accumulated loss for the two quarters exceeds KRW 5 trillion.
It appears challenging to expect an improvement in performance in the second quarter as well. According to market research firm TrendForce, DRAM prices have fallen by 13-18% in the second quarter. The average contract price of PC DRAM (DDR4 8Gb) in June decreased by 2.86% compared to the previous month, reaching $1.36. The industry predicts that SK hynix's operating loss in the second quarter of this year will exceed KRW 2 trillion.
In response to the worsening market conditions, SK hynix has been implementing cost reduction measures since the fourth quarter of last year, focusing on less profitable products. The company plans to continue these cost reduction efforts until the second half of this year.
In addition to cost reduction, the company is also reducing its workforce to improve performance. As of May, Solidim had approximately 1,000 employees at its headquarters. There are around 2,000 employees working in 13 branches worldwide.
Solidim is a subsidiary established by SK hynix after completing the acquisition of Intel's NAND business unit Phase 1 in December 2021. Although initially headquartered in Santa Clara County, California, the company relocated in February.
https://www.theguru.co.kr/news/article.html?no=56460
