New realities
In a short statement, Intel has revealed that it will be consolidating its manufacturing operations in response to current market conditions - i.e. reduced demand.
The sites affected are assembly test facilities in Penang, Malaysia and Cavite, Philippines, production will be halted at Fab 20 in Oregon and wafer production will stop at the D2 facility in California.
Intel says these actions will affect between 5,000 and 6,000 employees, but that some of them may be offered new jobs elsewhere in Intel. These changes are expected to be completed over the course of this year.
Every factory not operating at close to full capacity costs Intel money and it's clearly concluded that the drop in demand brought about by the global recession is here to stay for the mid-term at least. Like all other companies right now, it's having to adjust its operations to embrace new commercial realities.
