Feeds

Intel shuts Shanghai plant

Chinese job shift

Boost IT visibility and business value

Intel plans to shut down an integrated circuit-packaging plant in Shanghai as a cost-cutting measure that will affect about 2,000 workers.

The company said today its chip manufacturing facility in the open economic development zone of Pudong, China will be shuttered over the next 12 to 18 months.

Intel spokesman Chuck Malloy told us the workers there are expected to be offered positions at the company's Chengdu or Dalian plants elsewhere in China.

The chip maker's assembly test facility in Chengdu currently employs over 600 people, according to the Intel website. Mulloy said the company is still working out the details of how many positions will be available at the plant.

The Dalian fab is still under construction and expected to begin chip production in 2010. The plant presently has a small number of employees now but will grow, according to Mulloy.

Intel has already announced the consolidation of several manufacturing and R&D operations around the globe this year to compensate for slower sales in the global recession.

In January, Intel said it will close chip assembly plants in Malaysia and the Philippines and stop US wafer operations in Oregon and California, affecting between 5,000 and 6,000 employees at the sites. Weeks later, it announced plans to merge its 800 European-based research and development staff into a single organization, dubbed Intel Labs Europe.

The cutbacks are spurred by Intel's 90 per cent drop in net income for its fourth quarter 2008 due to lowered demand from computers and a billion-dollar write-off of its investment in the WiMAX service provider Clearwire. ®

Best practices for enterprise data

More from The Register

next story
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Nintend-OH NO! Sorry, Mario – your profits are in another castle
Red-hatted mascot, red-colored logo, red-stained finance books
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
prev story

Whitepapers

7 Elements of Radically Simple OS Migration
Avoid the typical headaches of OS migration during your next project by learning about 7 elements of radically simple OS migration.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
A new approach to endpoint data protection
What is the best way to ensure comprehensive visibility, management, and control of information on both company-owned and employee-owned devices?