Intel shuts Shanghai plant

Thu, Feb 5th, 2009

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.

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