Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Atmel Announced Today Layoffs of Contract Workers at US Fab in Colorado

"Atmel Corp. has ended the contracts of an undisclosed number of temporary workers at its Colorado Springs manufacturing plant, as the California-based semiconductor manufacturer responds to slowing sales and a weakening world economy."

"He declined to disclose how many temporary workers were involved in the reduction, but added that the company doesn’t  expect to lay off any of its 5,000 permanent employees as officials hope the downturn “doesn’t last much longer.”

Call it what you will...ending contracts on Fab temporary workers or layoffs of regular full time employees.....demand is dropping!

Last week Microchip announced Holiday shutdowns at Thanksgiving and Christmas. As the company noted these facilities normally run 24 hrs a day 7 days a week 365 days a year. Microchip does not employ temporary contract workers and will adjust the work schedules of all employees to the market conditions. They did not even layoff in the 2008-2009 downturn.

On 11/4 AMD announced a 10% staff cut to be completed by the 1st qtr.

Demand is dropping and the semiconductor companies will see the effects first!

More on that later.