Digitimes has an interesting report suggesting Chinese manufacturers are putting in early orders for chips because of ne incoming labor laws that will empower workers to decide whether or not to work overtime. Digitimes writes:
Thanks to new employment laws in China that empower employees to choose not to work overtime or else receive compensation at a higher rate, OEM/ODM IC orders are being brought forward to September, since makers hope to get the orders done in advance rather than wait for the peak holiday season, according to industry players.
The extra order momentum is expected to spur sequential sales growth for Taiwan IC design houses in September, challenging monthly records, and should prompt them to increase targets for the third quarter, the sources noted.
The sources identified MediaTek, Richtek Technology, Global Mixed-mode Technology (GMT), Global Unichip, Ralink Technology Corporation, Sitronix Technology, Orise Technology, Realtek Semiconductor, IC Plus (IC+) and ALi as companies whose sales are expected to hit record levels.
China is in constant flux and there laws seem to be constantly changing. At least for now this does seem to benefit Taiwanese companies over the short term.
Digitimes: IC design houses to see strong sales in 3Q08 thanks to China employment laws
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