Intel closing or halting production at older factories, affecting 6,000 workers

Intel said it will close five older factories and lay off between 5,000 and 6,000 workers.

The world’s largest chip maker will close two assembly and test facilities in Penang, Malaysia and one in Cavite, Philippines. It will also halt production at Fab 20, an older eight-inch wafer manufacturing plant in Hillsboro, Ore. and at the D2 factory in Santa Clara, Calif.

“The actions at the four sites, when combined with associated support functions, are expected to affect between 5,000 and 6,000 employees worldwide,” Intel said in a statement. “Not all employees will leave Intel; some may be offered positions at other facilities. The actions will take place between now and the end of 2009.”

The closings are consistent with the company’s statement in its earnings call last week that it would reduce its capacity utilization to avoid an oversupply of chips.

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