Intel to axe nearly half of workforce at Alpha fab

Intel is rationalising a fabrication plant in the USA where it makes Alpha chips, StrongARM devices, and other semiconductor components including PCI bridges.

It will lay off 675 people -- nearly half of the staff employed at Fab 17 in Massachusetts -- a plant it acquired after it bought Digital's semiconductor unit. But Intel said that the redundancies, which are likely to occur early next year, will not affect its ability to continue producing units in the fab.

Earlier this year, Intel said it would streamline its operations throughout the world. That has meant redundancies and reduction in overheads and expenses. But reports said the job losses at the Alpha plant were not part of Intel's original plans.

The move is likely to presage further cuts at other semiconductor plants

Intel acquired when it bought Digital facilities. Intel, however, took steps last week to demonstrate its commitment to the StrongARM platform at its Developer Forum in Palm Springs. ®