Hitachi, the Japanese manufacturer, has decided to stop its production unit for mobile chips, in order to curb manufacturing costs and boost production efficiency. The company had earlier decided to outsource the development of some semiconductor products, but now, considering the economic uncertainty, the firm has decided to cut out its semiconductor production altogether.
The Japanese manufacturer now plans to fully outsource semiconductor production for the telecom business, which is presently held under the firm’s Micro Device Division. “The intent of this move is to optimally allocate management resources to bolster the competitiveness of the entire Information & Telecommunication Systems business.” Hitachi said in a statement.
The manufacturer is attempting to grow its ‘Social Innovation Business’ and the current production decision is aimed at making the company more competitive worldwide.
While the Japanese company has not disclosed how this will change the overall situation for its workforce, but the company has said that the reassignment of human resources will be ‘examined’ as the firm goes ahead with its decision.
