Intel Shutting Down Several Factories, Laying Off Thousands

Posted 01/22/2009 at 7:37am | by Paul Lilly

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It doesn't matter how good Intel's Core i7 platform is (and it's pretty damn good), several thousand of the chip maker's employees could soon be looking for employment elsewhere. As part of a plan to restructure its manufacturing operations and realign its manufacturing capacity to current market conditions, Intel said it will consolidate several "older" facilities.

"The actions at the four sites, when combined with associated support functions, are expected to affect between 5,000 and 6,000 employees worldwide," Intel said in a statement. "Not all employees will leave Intel; some may be offered positions at other facilities. The actions will take place between now and the end of 2009."

The restructuring effort includes closing two assembly test facilities in Penang, Malaysia and one in Cavite, Philippines, and halting production at Fab 20 in Hillsboro, Oregon. Intel will also stop producing wafers at its D2 facility in Santa Clara, California. Despite the restructuring and layoffs, Intel says the deployment of 45nm and 32nm manufacturing capacity will not be impacted.

Image Credit: OregonLive.com