SAN JOSE, Calif. -- The other shoe has dropped at Intel Corp., as the chip giant will close two fabs and three IC-assembly factories.
The actions at what comes to four sites, when combined with associated support functions, are expected to affect between 5,000-to-6,000 employees worldwide.
Faced with the current IC downturn and slowing sales, the company plans to close two existing assembly test facilities in Penang, Malaysia and one in Cavite, Philippines. It will halt production at Fab 20, an older 200-mm wafer fabrication facility in Hillsboro, Ore. Additionally, wafer production operations will end at the D2 facility in Santa Clara, Calif.
The company said it will consolidate and streamline some older capacity without impacting the deployment of new, leading-edge 45- and 32-nm manufacturing capacity. The actions will take place between now and the end of 2009.
Some but not all of the actions were expected.