Intel Closes Down Some Facilities, Affects Up to 6,000 Employees

Rob Williams

Staff member
From our front-page news:
There haven't been too many companies unaffected by the state of the economy, and we can now add Intel to that list. In a release issued yesterday, the company announced plans to consolidate manufacturing operations, which includes closing down of some factories, all while leaving the deployment of 45nm and 32nm parts alone.

Two assembly test facilities to be shut down include those in Penang, Malaysia, and also Cavite, Philippines. Fab 20, an older 200mm wafer fabrication facility in Hillsboro, Oregon, will not be shut down, but will have production halted. In addition, it looks as though production will end entirely at D2, a fab located in the same city as Intel's HQ, Santa Clara, California.

These major changes are expected to affect between 5,000 and 6,000 employees worldwide, but Intel is quick to state that not all of those will leave Intel entirely. Rather, they may be offered positions in other facilities. There's surely not going to be 6,000 positions open up elsewhere, however, so many employees are no doubt going to have to battle with finding a job in this tight economy. That cannot be a fun experience, so we wish them luck.


The actions at the four sites, when combined with associated support functions, are expected to affect between 5,000 and 6,000 employees worldwide. However, 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.

Source: Intel Press Release


Techgage Staff
Staff member
Last time I tried to count how many fabs Intel had I got to 15. 200mm technology isn't cost effective anymore, and so many of their fabs are 65nm or 90nm or even higher... this news just is not surprising. I think they got every last dollar squeezed out of those fabs.