Intel closes its Assembly Test Facility in Cavite Philippines

Intel, a world leader in semiconductors closes a number of facilities which includes Oregon, California, Malaysia and the Philippines which will affect at least 5000 to 6000 of employees with 1800 of those are from the Philippines. The steady decline of PC sales has prompted the silicon tech producer to restructure itself to live with the changes in our digital world.

A copy of Intel’s full disclosure has been posted below:

Chuck Mulloy
Intel Corporation

Santa Clara, California, 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.

The company has been in operation in the country for 8 straight years where it headquartered in Dasmarinas Cavite and produced a handful of job opportunities and provided a number of innovations across the country.

A copy of Intel’s statement for its operations in Cavite reads below:

Arlita Narag
Corporate Affairs
Intel Technology Philippines Inc
Gateway Business Park, Javalera
General Trias, Cavite

As announced by Intel Corporation today, the impact of the economic downturn on our business was more severe than we anticipated and the outlook is uncertain. As a result, we have decided to restructure some of our manufacturing operations by taking older capacity off line and closing five factories during the course of 2009. Included in this action will be the closure of two of our assembly test facilities in Penang, Malaysia; and the assembly test facility in Cavite. Two of our wafer fabrication facilities in the United States will also end production.

Our manufacturing operations in Cavite will cease this year. Approximately 1800 employees will be affected and will be offered a severance package and a range of transition services. We know this is a difficult time for our employees and their families and we will make available the best support systems to ease the transition.

We are deeply grateful for the strong support that the Philippine Government has extended to our operations in the country in the last 35 years. It has been key to our success.

Our Sales and Marketing organization will not be affected by this action. Our major social responsibility programs in the Philippines will also continue, particularly in the area of science and math education.

As it is stated, while the facility in Cavite will be closed, Intel’s Sales and Marketing division will continue to flourish in the country including its educational programs particularly in Science and Mathematics.