Intel factory in Cavite closed by second half of 2009
By Lala Rimando – The Philippine assembly plant of the world’s biggest chip maker, Intel, will be shut down by the second half of 2009.
In a press briefing Friday, Arlita Narag, Intel Technology Phils. Inc.’s corporate affairs manager, said the Cavite assembly plant will be closed by the second half of the year.
The world’s biggest chip maker decided to close the Philippine factory, two more assembly plants in Penang, Malaysia, and a wafer fabrication facility in Oregon as part of its efforts to cut costs in its global manufacturing network.
The Cavite factory makes chip sets that end up in personal computers (PCs) and mobile internet devices that, because of the slowdown, have seen consumer demand plummet in recent months.
In December 2008 alone, chips exported from the 12-year-old Cavite plant plunged to US$250 million from $444 million in December 2007.
“The decision to close plants was not site- or country-specific but part of an analysis of our global capacity,” Narag said.
“There was nothing the Philippine government could have done to reverse that decision,” she added.
The Cavite plant imports all its raw materials and depends on services provided by its several host communities.
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