Intel Closing Older Plants, Up To 6,000 Workers Affected - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Infrastructure // PC & Servers

Intel Closing Older Plants, Up To 6,000 Workers Affected

The closures will have no impact on the deployment of Intel's current 45-nanometer line of products or the next-generation 32-nanometer chips, the company said.

Intel, which is coping with a big drop in sales in the PC market slump, said Wednesday that it would restructure some of its manufacturing operations, a move that would affect thousands of employees.

The company did not say how many jobs would be cut in the changes that would take place at four facilities through the end of this year. While the restructuring would involve consolidation and streamlining of operations, it would have no impact on the deployment of Intel's current 45-nanometer line of products or the next-generation 32-nanometer chips, the company said.

Intel planned to halt production at Fab 20, an older 200 mm wafer fabrication facility in Hillsboro, Ore., and to end wafer production at the D2 facility in Santa Clara, Calif. In addition, the company would close two assembly test facilities in Penang, Malaysia, and one in Cavite, Philippines.

The actions would affect between 5,000 and 6,000 employees worldwide. "However, not all employees will leave Intel; some may be offered positions at other facilities," a company statement said.

Intel last week reported that profits in the fourth quarter of last year plunged 90% and revenue fell 23% as the economic downturn hammered sales of PCs and consumer electronics that use Intel products. Besides lower sales, Intel's net income was hurt by a $1 billion net loss in its equity investment in Clearwire, a wireless broadband provider that leverages WiMax technology heavily promoted by Intel.

Worldwide PC shipments fell by 0.4% in the fourth quarter of last year from the same period a year ago, and 2.5% from the third quarter, according to IDC. It was the first quarterly drop in sales in six years.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
Slideshows
10 Ways to Transition Traditional IT Talent to Cloud Talent
Lisa Morgan, Freelance Writer,  11/23/2020
News
What Comes Next for the COVID-19 Computing Consortium
Joao-Pierre S. Ruth, Senior Writer,  11/24/2020
News
Top 10 Data and Analytics Trends for 2021
Jessica Davis, Senior Editor, Enterprise Apps,  11/13/2020
White Papers
Register for InformationWeek Newsletters
Video
Current Issue
Why Chatbots Are So Popular Right Now
In this IT Trend Report, you will learn more about why chatbots are gaining traction within businesses, particularly while a pandemic is impacting the world.
Slideshows
Flash Poll