Intel shifts China operations, 2000 jobs
As it increases investment in China, Intel discloses plans to wind down operations in Pudong and move capacity to its facility in Chengdu, shifting some 2000 workers in the process.
By Suzanne Deffree, Managing Editor, News -- EDN, February 6, 2009
Intel Corp is consolidating manufacturing and moving 2000 jobs in China as part of its recently announced restructuring.
Specifically, Intel's test and assembly plant near Shanghai and the plant's 2000 workers will be impacted.
"Over the next 15 to 16 months we will wind down operations in Pudong, which is outside of Shanghai, and move that capacity to our facility in Chengdu," Intel Spokesman Chuck Mulloy confirmed with Electronic News.
The 2000 employees impacted by the shift are expected to be offered positions in Chengdu or at Intel's new Dalian site, a 300-mm fab under construction now and with initial production slated for 2010. If the employees elect not to take those positions, they will be offered a severance package, Mulloy said.
"It falls within the same total overall workforce reduction of between 5000 and 6000 that we announced a few weeks ago," he said. "It's all part of the overall effort to get our capacity in alignment with current market demand. For example, Chengdu has more headroom for growth when we need it once we get a turnaround."
Intel on January 21 disclosed plans to close or end production at several of its plants, impacting up to 6000 employees, as it aligns its manufacturing capacity to current weak demand and market conditions. Specifically, Intel said it would close two existing assembly test facilities in Penang, Malaysia, and one in Cavite, Philippines, and will halt production at Fab 20, a 200-mm wafer fabrication facility in Hillsboro, Ore. The company also noted at the time that some of the impacted employees would be offered other positions within Intel.
The shift in Intel's China operations comes as the company also upped its capital investment in Shanghai by $110 million from the $50 million investment it has there now. Intel has not increased investment in its Dalian facility at this time, Mulloy said.
"We are taking our time with this project [Dalian] because it is our first new fab at a new site in more than 20 years," he said. "We are being very deliberate and there will be a lot of training."
Mulloy said no adverse affects to Intel's research center in Shanghai are expected as part of the actions.
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Why don't we have large exemptions from corporate taxes for companies that operate in US AND create US jobs as part of stimulus package? And those that don't, well, they can still operate, they just don't get good tax cuts. How 'bout that, huh? A nice Square Deal for Depression-like times! But, alas, given our corporate criminally corrupted political system, Wall Street will never permit it and, after all, they are the ones who REALLY decide who's in DC.
Frank - 2009-9-2 11:32:00 PST -
When are going Intel and others to learn that US unemployed people will not buy PC made with/out of their products?
When are they going to open their eyes to see that the root of this crisis is moving the jobs out of US?
zenovia zena - 2009-9-2 04:35:00 PST -
The layoff process for the impacted employees in Shanghai should be a tough one. 2000+ not a small quantity.
image - 2009-8-2 19:32:00 PST -
probably also a way to cut down salaries as the cost of life is lower in Sichuan (ChengDu) and in the north (Dalian) than in Shanghai.
yves - 2009-8-2 03:31:00 PST -
Shame on Intel, US crisis, lets send more dollars, and shift R&D to the country of our best friends in the world. The ones that have all of our best interst in mind. Thanks
Alan Sanders - 2009-6-2 17:08:00 PST
