US Semiconductor Equipment Company KLA Accelerates Global Layoffs Amidst Industry Struggles and Export Restrictions to China

As the global semiconductor industry continues to struggle, coupled with export restrictions on semiconductor equipment to China, US semiconductor equipment companies are accelerating their layoffs. Following Lam Research's announcement of layoffs, it has been reported that KLA has recently launched a layoff plan.

According to a report by Korean media outlet Newdaily, KLA's Korean subsidiary is currently working on screening employees for layoffs. Some of the employees being let go have raised procedural issues, stating "I was called to the head office without prior notice and advised to resign on the basis of annual salary negotiations."

The report indicates that KLA is not only laying off employees in Korea, but also globally by around 3%. KLA's Korean subsidiary has around 700 employees, and it is expected that many of them will be laid off.

It is reported that KLA's target for layoffs this time is engineers. In semiconductor equipment companies, engineers are responsible for the production, maintenance, and repair of products supplied to customer companies, but have become the number one target for layoffs, which has caused a backlash in the industry. Moreover, KLA's actions of firing employees on the same day as the notification violates labor laws. Even if the head office issues layoff instructions, companies usually carry out layoffs through voluntary retirement recruitment in advance.

Some have pointed out that even compared to Lam Research, the US equipment company that laid off employees previously, KLA's method of layoffs has many problems. Lam Research's Korean subsidiary accepted voluntary retirement applications from both management and ordinary employees last month.

It is analyzed that the US is increasing its restrictions on the export of semiconductor equipment to China, which is also having an impact on equipment companies' layoffs. Recently, the US think tank Center for Strategic and International Studies (CSIS) called for South Korea and Germany to also join the ranks of restricting exports to China. The report states that as the likelihood of Samsung and SK Hynix being unable to update equipment at their Chinese production bases increases, US companies providing and managing equipment will be the first to withdraw.

It is important to stay aware of industry developments, such as layoffs in semiconductor equipment companies, and any export restrictions that may affect the supply chain. This can help to ensure that inventory and pricing are adjusted accordingly to meet market demand.