County chip makers back to full capacity

Clark County semiconductor manufacturers are once again operating at full capacity after two years of falling orders, furloughs and layoffs, economic development officials and companies within the industry report.

The turnaround, which started in late 2009, is now nearing a steady pace as consumer demand returns for computers, mobile phones and other personal electronics.

“It has been a remarkable turnaround in the sector,” said Bart Phillips, president of the Columbia River Economic Development Council. “When the economy tanked, orders for new chips plummeted and plants were operating at 40 or 50 percent of capacity… That is no longer the case.”

Chip makers are ramping up production in response to a general increase in global demand for their products. Though worldwide semiconductor sales were down 1.3 percent from the previous month at $22 billion in February, sales were up 56.2 percent from a year ago, according to a report released Monday by the Semiconductor Industry Association.

Higher productivity by chip manufacturers hasn’t yet created more jobs in Clark County, however.

Computer and electronic product manufacturing employment held steady in the first two months of 2010 at 2,800 workers both months, according to the Washington Employment Security Department. Overall, the sector was down 400 workers since February 2009, a year-over-year decline of 12.5 percent.

Companies are instead hiring temporary workers to meet their production needs, said Scott Bailey, Southwest Washington regional economist with Employment Security.