Intel to close test facilities, shut down a fab

— 4:51 PM on January 22, 2009

AMD isn't the only firm having a difficult time financially. Intel has announced plans to "restructure some of its manufacturing operations and align its manufacturing capacity to current market conditions." Translation: the chipmaker will close two assembly test facilities, stop production at a 200mm chip fab, and halt wafer production at another fab.

This news comes right after Bloomberg leaked an internal Intel memo mentioning the possibility of a loss for the first quarter. The factory changes will affect 5,000-6,000 employees, although Intel won't lay off all of them—some "may" get new jobs at other fabs, it says. The affected assembly test facilities are in Malaysia and the Philippines, while the 200mm fab that's shutting down is in Hillsboro, Oregon, and the fourth facility is in Santa Clara, California.

The changes should take place "between now and the end of 2009," Intel says. According to EDN, the Santa Clara facility will be carrying out development work for Intel's next process technology.

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