Intel to Close Older Factories, Cut Jobs

Intel has announced plans to shut down some of its older manufacturing facilities...and the move may eliminate up to 6,000 jobs.

Chipmaker Intel has announced it will be shutting down four older manufacturing plants in a move to restructure its operations. The impacted plants are assembly test facilities in Malaysia and the Philippines, as well as wafer production plants in Hillsboro, Oregon, and Santa Clara, California. Intel expects the closures will impact between 5,000 and 6,000 employees, although the company stresses they may not all leave Intel: some may be able to find positions at other manufacturing facilities.

The closures will not impact Intel’s 45- and 32-nanometer production facilities. For instance, the plant in Hillsboro, Oregon, focuses on 200nm technology. According to industry sources, the four plants have been operating at less than their full capacity for some time.

Intel did not say how much money it expects to save by shutting down the facilities.

Assembly test plants are facilities where chipmakers cut apart silicone wafers into separate chips, test to ensure they operate correctly, and package them for distribution.