Hitachi scales back Asia staff

Hitachi Semiconductor US has been forced to axe 20 per cent of its workforce as the Asian financial crisis starts to take hold of companies' financial situations.

The division of the Japanese giant is to make 200 staff redundant as it moves its focus to more profitable products and operations.

According to Hitachi, the move is part of a plan to switch away from production of DRam memory chips to components with a more stable future.

This follows last week's decision by Hitachi to suspend the production of DRams in Japan.

Production will now shift to other semiconductor products including Asics (customised chips), processors and microcontrollers, the company said.

Hitachi has suffered more than most from the slump in memory prices, which is now coupled with the Japanese economic crisis.

Hitachi Semiconductor employs over 1,000 people in the US, and the move out of that market will help the company reduce its dollar funding abroad.