I am having exactly the same problem. I am gonna be graduated in Dec. 2011 and couldn't find any internship or full-time job. I am really interested in my field 'Digital VLSI Design' and I don't wanna go in software or communication field. Although I am in the middle of silicon valley, california and I have faced four interviews from intel for different positions, but haven't been hired yet. It's really a frustrating kind of situation, but still I'm optimistic and keep studying and trying for the job. It'll be a great help if anybody can give me a guidance.
Thanks.