Intel Close 5 facilities / Shutdown / Layoff / Cut People

Intel will closed 5 of their facilities world wide due the lack of world economic. It will affected to 5000-6000 Employees world wide. That they offer the VSS to employee? not to sure yet..For the Malaysia employee who work in penang maybe will relocate to KM1,KM2,KM3,KM5,KM6 (based at Kulim). Where the engineer will base later.. got any job opening for BDCM (Board Design Centre Malaysia). Jobs at Intel:

I work there before at KM3…

Here more news:


SANTA CLARA, Calif., Jan. 21, 2009 – Intel Corporation today disclosed plans to restructure some of its manufacturing operations and align its manufacturing capacity to current market conditions. The company will consolidate and streamline some older capacity without impacting the deployment of new, leading-edge 45-nanometer and 32-nanometer manufacturing capacity.

The company plans to close two existing assembly test facilities in Penang, Malaysia and one in Cavite, Philippines, and will halt production at Fab 20, an older 200mm wafer fabrication facility in Hillsboro, Ore. Additionally, wafer production operations will end at the D2 facility in Santa Clara, Calif.

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.


Intel intends to close two of their Assembly & Test facilities, located in Cavite and Penang. They will also halt production at two other facilities, laying off at least 5,000 people.

The Cavite facility in the Philippines is actually two buildings next to each other, known as CV1 and CV2. CV1 had the capability to handle wafer sizes in 200 and 300mm in its 268,000 square foot clean room, while CV2 could only handle 200mm in its smaller 149,000 sq. ft. clean room. CV1 was built in 1997, while CV2 was built in 1998 and handled mostly flash memory processing, which has been made redundant due to Intel exiting that business line.

The Penang facility in Malaysia consists of three buildings. PG6 and PG7 could only handle 200mm wafers, but PG8 was upgraded in 2005 to handle 300mm wafers. Malaysian operations will continue and consolidate at their Kulim facilities.

After Intel’s wafers are produced at a fab, they are sent to Intel’s Assembly and Test facilities where each wafer is cut into individual silicon dies, placed within external packages, and tested for functionality.

Intel is consolidating a lot of its Asian Assembly and Testing into its newest facilities in Chengdu, China, and Ho Chi Minh City, Vietnam, due to labor costs and lower demand.

Production will halt at fab 20 in Hillsboro, Oregon. It was built in 1996 to handle 0.13 micron core logic production on a 200mm line, boasting a 140,000 sq. ft. clean room.

Intel will also halt wafer production operations at its D2 facility in Santa Clara, California. Built in 1988, it handled mostly flash and communications chips, as well as cellular and handheld product development. Throughout its twenty year life, D2 saw 0.13 micron and 90nm production, and was upgraded in 2006 to run 65nm on its 200mm line. Intel’s headquarters are also located in the City of Santa Clara.

Intel announced that it would be taking a $250 million charge due to fab underutilization on January 15th.

Intel was particularly persistent in pointing out that this is all obsolete production, and does not affect current production at its three Fabs producing at 45nm in Chandler, Arizona; Kiryat Gat, Israel; or in Rio Rancho, New Mexico. It will also not affect the introduction and ramping of their 32nm process.


Amid speculation it may be close to reporting its first quarterly loss in 22 years, Santa Clara computer chip maker Intel Wednesday said it will lay off at least 5,000 employees — including an undetermined number in the Bay Area — and shut five manufacturing plants.

As part of a corporate-wide restructuring, the world biggest chip maker said it will cease plant operations in four locations — Santa Clara, Hillsboro, Ore., Penang, Malaysia and Cavite, Philippines.

The announcement comes a day after some news organizations reported that Intel’s Chief Executive, Paul Otellini, had warned his employees during a corporate Web cast last week that the company might not earn a profit for the first three months of this year.

Last week, Intel said it earned $234 million on revenue of $8.2 billion, which represented a 90 percent drop in profit from the same period a year ago. Intel’s executives have not given a formal revenue forecast for the first quarter of this year, but have roughly estimated it will be around $7 billion. The last time the company failed to earn a profit was in the fourth quarter of 1986.

Craig Berger of FBR Capital Markets was among several analysts Wednesday who said he wouldn’t be stunned if Intel fails to make a profit this quarter.

“We have seen pretty significant deterioration in demand” for computer chips, he said, though he added that no one — including probably Intel’s top executives

Berger said he believes Intel could earn $100 million this quarter, while most analysts surveyed by Thomson Reuters have forecast a profit of about $190 million. The last time the company’s net income was less than that was in the third quarter of 2001 when it earned $106 million.

If Intel does suffer a loss this quarter, it’s still in a lot better shape than most other chip makers and should have no trouble surviving the recession, said Nathan Brookwood, a research fellow at the Saratoga market consulting firm Insight 64.

“If Intel can’t do OK in the longer term,” he said, “then the United States economy and the world economy are in one heck of a lot of trouble.”

In a prepared statement Wednesday, the company said the plant closures “when combined with associated support functions, are expected to affect between 5,000 and 6,000 employees worldwide.”

Intel spokesman Chuck Mulloy said some of the impacted employees may be offered positions at other Intel facilities, but that at least 5,000 workers would lose their jobs.

About 400 Bay Area employees are affected; Mulloy said it’s likely many of them would be laid off. Intel had 84,000 employees at the end of last year.

The last time the company laid off workers was in 2006, when it let go about 10,000 employees as part of a broad corporate restructuring.

Mulloy added that Intel executives have been considering making the changes for some time, but that “this whole thing has been accelerated by the current economic climate.”

Given Intel’s weakening financial picture, Caris & Co. analyst Betsy Van Hees said she wasn’t surprised the chip maker was closing some of its plants and laying off workers.

Although it will be painful for those who lose their jobs, “it’s definitely a step in the right direction,” she said. “It’s something we were looking for the company to do.”

The company’s statement said the changes are expected to take place over the course of the year.

Intel made the announcement after the stock market closed Wednesday. Its shares rose 40 cents to $13.26 at the close and an additional 15 cents in after-hours trading.

— can accurately predict the company’s fortunes over the next couple of months due to the uncertain economy.

By akuadi

21 thoughts on “Intel Close 5 facilities / Shutdown / Layoff / Cut People”
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