SiFive Layoffs Workforce by 20% Amid Strategic Refocus — And There’s a China Angle

YEREVAN (CoinChapter.com) — SiFive, a semiconductor design company based in Santa Clara, California, has laid off its workforce by 20%, affecting approximately 130 employees.

The SiFive layoff comes as the company undergoes a strategic refocusing of its global teams, aiming to better align the company with rapidly changing customer demands.

SiFive is renowned for its expertise in designing chips based on RISC-V, an open-source chip architecture gaining traction in the semiconductor industry.

While the company competes with industry giants like ARM, which provides foundational chip designs but not the chips themselves, SiFive has carved a niche by offering customizable solutions based on the RISC-V architecture.

In a statement, SiFive explained:

“As we identify and focus on our greatest opportunities, SiFive is shifting to best meet our customers’ fast-changing requirements by undergoing a strategic refocusing of all our global teams.”

SiFive Layoffs Won’t Impact Existing Semiconductor Operations

SiFive’s layoff underscores its commitment to adapt to evolving market demands while maintaining its long-term goals.

The company’s core business, which involves manufacturing chips for applications in low-power devices, consumer electronics, automotive systems, and artificial intelligence (AI), remains unaffected by the layoffs. Its representative David Miller emphasized that the restructuring impacted all divisions within the company, including executives, causing SiFive layoffs.

Despite SiFive layoffs, its product lines continue to operate, ensuring customers can access standard chip blueprints. However, the company is scaling back its efforts to provide highly customized chip designs, focusing instead on readily available designs.

In March 2022, SiFive secured over $2.50 billion valuation following a successful $175 million Series F funding round. The company boasts a list of influential backers, including AMD, Coatue, Intel, Qualcomm Ventures, Samsung Ventures, and Western Digital Capital.

The China Angle

The SiFive layoffs occur against the backdrop of growing calls for restrictions on US companies’ involvement in RISC-V, particularly regarding Chinese partnerships. Some US lawmakers have raised concerns that China may leverage its collaborations with American companies to advance its military and semiconductor industries.

Qualcomm recently announced a partnership with Google to develop wearable technology powered by RISC-V chips. This partnership underscores the significance of RISC-V in shaping the future of semiconductor technology and the competitive landscape in the industry.