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SAYS SOURCES
Intel announces RP operations shutdown

By Lawrence Casiraya
INQUIRER.net
First Posted 12:34:00 01/21/2009

Filed Under: Economy and Business and Finance, Technology (general)

Editor’s note: Updated to correct figures.

MANILA, Philippines – Intel has announced to employees its plan to shut down its more than two-decade-old test-and-assembly facility in the Philippines.

The company made the announcement via email sent to employees around 10 a.m. Wednesday, several sources confirmed with INQUIRER.net.

INQUIRER.net also tried to contact Intel officials and its local PR agency but they were not ready to give any official statement at the time of this writing.

According to sources, the announcement was half-expected as Intel announced its first batch of lay-offs in November last year.

The rest of the employees were informed about succeeding "phases" in layoffs and that they will get their separation packages in three months' time.

Since then, Intel's local office has also conducted job fairs and education seminars, such as starting small businesses.

This morning's email confirmed the eventual shutdown, although there was no definite timeline indicated when exactly Intel's facility in General Trias, Cavite will close.

Intel's manufacturing facility still employs some 1,800 workers.

Intel is also reportedly shutting down at least three more facilities in other countries aside from the Philippines due to weakened demand brought about by the current global economic downturn.

The US-based chipmaker set up its manufacturing facility in Makati City in 1974, then transferred in Cavite.

Last year, Intel announced a joint venture, called Numonyx, with Switzerland-based STMicroelectronics. The Cavite facility handles flash memory manufacturing.

In Asia Pacific, Intel is widely believed to be consolidating its investments in China and Vietnam.



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