Orange County’s largest chipmakers combined for a slight drop in jobs over the last 12 months as the local industry was hit by restructurings, a bankruptcy and generally soft demand.
The number of local workers at the 20 biggest chipmakers here fell by 67 positions in the past year for a total of 4,829, according to this week’s Business Journal list. The 1.4% drop snapped a three-year streak of gains.
The recent setback comes as global chip sales are expected to grow 2.1% this year to nearly $298 billion, a moderate pace helped along by the growth of smartphones, tablets and connected devices in the home and at work, according to World Semiconductor Trade Statistics.
Five companies on this week’s list grew their workforces. Six were down, and one was flat from a year ago. Eight companies were Business Journal estimates.
Perennial No. 1, Broadcom Corp., added 100 local employees for a total of 2,500 in OC, up 4.2% from a year ago. The Irvine-based company, which specializes in communication chips that power Wi-Fi, Bluetooth, GPS and other applications, accounts for more than half of the local employees on this week’s list.
Broadcom posted its gain on jobs here despite recent word of a restructuring plan that has gotten under way that will cut as many as 1,150 jobs, about 9% of its global workforce. The company will lay off 84 people in Irvine, according to a filing with the state.
The company, in a released statement, singled out other potential employee cuts stemming from its recent deal to acquire certain assets of Tokyo-based Renesas Electronics Corp. for $164 million.
No. 3 Microsemi Corp. shed 14 employees to 266 positions, down 5% from a year ago.
The Aliso Viejo-based company, which specializes in timing and power management chips for the industrial and aerospace markets, has gradually trimmed positions that have become redundant as part of its long-standing roll-up strategy.
Mindspeed
No. 5 Mindspeed Technologies Inc. cut 22 positions, down 10.6% to 186 local positions. The Newport Beach-based company shed an unspecified number of positions following last year’s $51.8 million acquisition of U.K.-based Picochip Ltd.
Mindspeed, which makes chips for routers, switches and other networking gear, is set to sell most of its assets for $272 million to Lowell, Mass.-based M/A-COM Technology Solutions Holdings Inc.
The company earlier this month said it’s in “advanced discussions” with a separate strategic buyer to sell its wireless business.
No. 7 Conexant Systems Inc. cut 57 employees as part of its bankruptcy reorganization earlier this year.
The numeric drop tied No. 2 Tower Semiconductor Ltd. in Newport Beach for the most on the list.
Conexant now employs 99 here, down 36.5% from a year ago. It recently moved its headquarters to Irvine from Newport Beach as part of its reorganization. It had been leasing and subleasing one of the two offices at the 4000 MacArthur office complex prior to the move.
Conexant emerged from Chapter 11 protection in June, with hedge fund billionaire George Soros’ QP SFM Capital Holdings Ltd. taking over ownership from its San Francisco-based parent, Golden Gate Private Equity Inc.
The company designs, develops and sells “chip sets,” which are chips and related software embedded in video surveillance equipment, smart TVs, PCs, fax machines and set-top boxes, among other products.
Carlsbad-based MaxLinear Inc. added 23 employees, up 34.3% to 90 local employees and good for No. 8 in its inaugural appearance on the list.
The public company has benefited from growing demand for its front-end, radio frequency analog chips used in the cable industry to pick up signals, tune into frequencies, amplify them and clean up noise.
“That’s been a growth business for us,” said Chief Financial Officer Adam Spice. “We’re poised to replicate that growth in the satellite market, which is happening this quarter.”
Semicoa
Costa Mesa-based defense contractor Semicoa Corp. fell four spots to No. 11 after shedding 45 employees to 85 people.
“Semicoa is merely adapting to business realities as defense programs have either been reduced or funding has been delayed,” a company spokesperson said.
Semicoa saw sales top $35 million at its peak of almost 200 employees. Its chips are needed to perform under extreme conditions and have been used by defense contractors, including Raytheon Co. and Northrop Grumman Corp., among others.
The company underwent a management change last year and has struggled to regain the position it once had that led Microsemi to briefly acquire it for $25 million in 2008. Microsemi struck a deal a year later to divest the business rather than face antitrust lawsuits. It sold off the remnants of Semicoa for an undisclosed sum to Los Angeles-based private equity firm Vance Street Capital LLC.
Irvine-based RFaxis Inc. is another newcomer to the list. The company added 10 people for a total of 38 workers. The 35.7% jump was the highest percentage increase on the list.
The company, which develops RF front-end integrated circuits, recently launched a new product line for the growing wireless connectivity, smart home, Bluetooth, sensors and audio and video streaming markets.
“Because of all the new developments, we’ve had to staff up,” said Business Operations Manager Mary Bezanilla.
