Micron Technology Inc. is shifting about 200 administrative personnel to the semiconductor assembly line.
"Since we suspended hiring, we need to make sure our critical manufacturing needs are met," Micron spokeswoman Julie Nash said.Since a hiring freeze went into effect June 1, employees have been shifted from nonessential administrative functions into the fabrication unit.
They will not face any cuts in pay because of the move to manufacturing, Nash said.
The employees are not just entry-level clerks but come from varying administrative positions, including engineering, depending on what each department can spare, she said.
At least in the short term, Micron has no plans to begin laying off large numbers of workers, Nash said. Micron employs about 7,000 people and has about $2.9 billion in annual sales.
The hiring freeze was a result of plummeting prices in the past 10 months for dynamic random access memory chips, or DRAMs. The price of the chips, which allow computers and other electronic devices to store data for quick retrieval, has dropped about 70 percent since September.
Moreover, the lower prices for the chips, Micron's main product, caused the company to halt construction on its $2.5 billion plant in Lehi, Utah.
The company also reacted to falling prices by cutting the salaries of 15 company officers and asked the U.S. Department of Commerce to look into chip dumping by Hyundai Electronic Industries Co. and LG Semicon.
In mid-June, the company announced that its profits fell 74 percent during the third quarter, compared with the period a year earlier, because of the falling DRAM prices.
Chip prices have dropped as more manufacturing capacity came on line at the same time that demand started to decline.
Personal computer makers slowed or canceled orders in the first several months of this year as they tried to get rid of excess inventory and prepare for new models.