Printed circuit board (PCB) maker Dynamic Electronics Co (定穎電子) is to lay off 87 percent of its employees as part of its restructuring plan to streamline production.
The company plans to turn its plant in Gueishan District (龜山), Taoyuan, into a research-and-development center and sales office, while reallocating production to its overseas plants, it said in a filing with the Taiwan Stock Exchange yesterday.
Dynamic has plants in Kunshan, Jiangsu Province, and Huangshi, Hubei Province, in China.
The adjustments reflect the effects of an escalating US-China trade dispute, which has depressed the global economy and consumer spending.
The company is to lay off 420 employees on Oct. 15, a statement posted by the Taoyuan Department of Labor on its Web site said.
Dynamic has 490 employees in Taiwan, the statement said.
The layoff would be the second biggest in Taoyuan, after flexible PCB supplier Career Technology Co (嘉聯益), a supplier to Apple Inc, slashed 434 jobs in March.
Dynamic is to sell the Taoyuan fab’s facilities and equipment via an auction on Oct. 18.
The company eked out a net profit of NT$12 million (US$381,546) last quarter, compared with losses of NT$39 million in the first quarter and losses of NT$195 million in the same period last year.
Gross margin rose to 10.5 percent last quarter, from 8.8 percent a quarter earlier and 6.6 percent a year earlier.
Revenue last quarter grew 5.9 percent sequentially and 2.9 percent from a year earlier to NT$3.23 billion, with PCBs used in automotive items contributing 42 percent to total revenue.
The company reported losses of NT$240 million for last year, its annual report showed.
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