Intel Closing Five Production Facilities To Staunch Losses

As suggested was a likely possibility in the leaked internal memo earlier this week, Intel has announced the closure of five factories in an attempt to save money.  The plan, suggested by CEO Paul Otellini, will affect between 5,000 and 6,000 workers worldwide, as plants in Oregon, California, Malaysia and the Philippines end production.  However Intel hope to offer at least some of the employees positions at alternative facilities.

Fab 20, a wafer fabrication facility in Hillsboro, Ore., will cease its production of 200mm wafers, while the D2 wafer production facility in Santa Clara, California, will similarly close.  Outside of the US, two existing assembly test facilities in Penang, Malaysia and one in Cavite, Philippines will also shut their doors.  Intel expect the closures to be completed by the end of 2009, and claim that they will not affect current 45nm and 32nm chip production.

Intel have failed to make financial predictions for 2009, something the company has not done in at least 34 years.  Otellini's memo suggested that the company could post its first quarterly loss in 21 years, with performance "too close to call".