KUALA LUMPUR, 23 JANUARY 2009 - Silicon firm Intel Corporation has said it plans to close two assembly facilities in Penang as part of a worldwide plan to align manufacturing capacity to current market conditions.
According to an Intel Corporation representative, the global move affected five older factories -- whose production included older 200mm wafer fabrication -- would be closed.
Three Asia Pacific older assembly test facilities are included – two in Penang, Malaysia, and one in Cavite, Philippines.
Between 5,000 and 6,000 employees worldwide would be affected, however Intel Penang corporate affairs manager, Loo Cheng Cheng, said that the actions, which would take place between now and the end of 2009, would not result in any retrenchment. He said that about 1,000 affected employees would be redeployed to a newer plant in Penang and three plants in Kulim.
Loo said that the moves are part of an exercise to m1,000 affected employees would be redeployed to a newer plant in Penang and three plants in Kulim.ove manufacturing from older to newer plants and that Intel employed about 10,000 employees in Kulim and Penang.
The consolidation was to streamline current production, he said, would not affect the rollout of new, leading-edge 45-nanometer and 32-nanometer manufacturing capacity. “Our experienced employees will be deployed in the other factories in Malaysia. Again, it is our intent to offer affected employees comparable jobs within our other facilities in Malaysia.”
“The move will consolidate and streamline manufacturing operations without impacting the deployment of new leading-edge capacity,” said Loo.
