October 24, 2001 – Tokyo, Japan – NEC Corp. said it will ask about 9,000 employees in its semiconductor division at the parent company to stay at home on Wednesday, as the microchip market remains stagnant, according to the Nihon Keizai Shimbun.

It will be the first time in 27 years that NEC has asked employees at the parent firm to take temporary leave, last making the request in 1974 when the firm was hit hard by the oil crises.

The company temporarily furloughed workers at three plants operated by its semiconductor subsidiary in Kyushu early October. The continued slump in chip prices prompted the extension of the move, as the firm tries to “instill a sense of crisis” in its workers.

Design and R&D staff and marketing people in the electron device unit will be affected. They will be paid 80% of normal salaries.

The workers are also scheduled for one-day leave in November and December.

Rival Fujitsu Ltd. has already announced a temporary furlough at three domestic chip plants in October and November.