Feeling squeeze, Intel closes older, profitable fabs
Thu, Jan 22nd, 2009
Following a grim earnings report for the fourth quarter of 2008, Intel has announced plans to shutter two test and assembly plants, one in the Philippines and one in Malaysia. The chipmaker will also halt production at five older fabs, while focusing most of its production efforts on its existing 45nm lines and its 32nm ramp-up. These actions will result in some 5,000 to 6,000 lost jobs.
The two production halts at fabs 20 and D2 are the real news here, though. Even after all the reporting I've done on the tanking PC market, I didn't expect this to start happening so soon. Shutting down these older fabs is a much more painful decision than most people probably realize, and it's a fairly serious action on Intel's part.
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