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Intel to shutter production at five facilities, lay off thousands

22 January 2009 | By Tom Cheyney | News > Fab Management

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intel In an effort to restucture its manufacturing operations and align its production capacity to the current market, Intel said it will close four existing facilities. The move will affect between 5000 and 6000 employees worldwide, although some of the workers may be offered positions at other sites.

As part of its actions to consolidate and streamline some older capacity without impacting the deployment of leading-edge 45- and 32-nm semiconductor manufacturing capacity, Intel will shutter two existing assembly test facilities in Penang, Malaysia, and one in Cavite, Philippines. It will also halt production at Fab 20, an older 200-mm fab in Hillsboro, OR, as well as ending wafer fabrication at D2, the one-time flagship facility in Santa Clara, CA.

Intel said last month that it had finished the development phase of its 32-nm manufacturing process and expected to have the next-generation technology production ready by the fourth quarter of 2009. In its most recent financial reporting, the semiconductor giant also revealed that it plans to maintain its capital expenditures for 2009 at about the same level as those for 2008.

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Reader comments

Are all these plant closures at Intel and others triggered by the recession, the liquidity crisis and Moore's Law ending? Is it simply a perfect confluence of several storms, or there is more I am missing? The magnitude of the contraction seems so devastating that I wonder what the semi industry will look like after the recession/depression is over, by 2012 to 2015....?
By Adolfo Gutierrez on 22 January 2009

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