January 2009 Breaking News!: Intel facility closure worldwide
- Intel closes Malaysia, Philippines, Oregon & California Operations
- Intel to shut down Cavite facility by year-end
First, it was Intel Makati that closed down. Then, Intel Philippines sold its flash division. Early April of 2007, Intel announced a $2.5 billion fab in China — that paved the way for speculations that it’s leaving the country.
Today, Eugene got wind of an imminent closure from purportedly existing employees of the Intel, Cavite plant.
From comments on the blog, there are claims an internal memo circulated yesterday that Intel is definitely moving out of the Philippines. Actual reasons vary — from high corporate taxes, to expensive electricity charges and even stealing of microchips. Our source says it’s about the structural integrity of the Cavite plant (that’s why the Laguna TechnoPark was an option).
As of this posting, I received an email from a former colleague who works at Intel Cavite and they were already informed yesterday that they are closing down the site in 6-9 months. I feel sad about this news since i knew a lot of people over there who are really good and now they need to find work. {comments Raymond on an earlier blog post}
A former employee of Intel, Cavite previously told me that when they asked the big bosses about their road map, none was given. The existing plans were only up to 2010. That prompted the employee to jump off and resign as he says it signals an unknown future for the company.
What’s more surprising is that the announced closure will happen as early as 6 to 9 months. Will post additional info later — trying to get a hold of that internal memo.
Intel may be really moving most of its Asian operations to China. That’s where cheap labor is abundant. Intel still has assembly test sites in Kulim & Penang, Malaysia, Pudong & Chengdu, China and Ho Chi Minh City, Vietnam.
Update: This has been confirmed by people from inside. The internal memo was circulated yesterday. There’s still no formal Corporate Announcement though. I’m still trying to get a copy of that memo.
Update 2: The plant will shut down in 6 to 9 month. The back-up plan is to find another location in the country, possibly Laguna TechnoPark or just totally shut down. Plans are not clear yet. Even 12 months lead time is not enough to shut down an Intel plant that big. Most employees are still in the dark.
Update 3: This is the copy of the internal memo we got from inside:
Intel gives update to employees in Cavite
Posted April 2, 2008Intel leaders in the Philippines told employees Wednesday that significant investments would be required to continue operating the CV1 building, which houses our Assembly and Test operations in Cavite.
In meetings with employees, Intel leaders said they are exploring multiple options for Intel’s long-term presence in the Philippines, which could include the possibility of a smaller operation. Efforts to improve the overall efficiency of Intel’s Assembly Test network have allowed the company to reduce our total amount of floor space required.
Intel leaders in the Philippines say that our plans in that country will be announced to employees by the end of Q2.
Okay, that’s vague.
70% of Intel Phils. employees have to say GOODBYE before Christmas.
[...] April 2008, Intel has been consistently shaving off manpower in the Cavite plant and is now down by about 800 [...]
Another breaking news just 4 hours ago, Intel will shutdown operations in Cavite. They will no longer transfer to Laguna. This week was suppose to be the sign off schedule of the Phase 2 layoffs but it was held back because of the recent announcement that it will completely shutdown.
Thank you Intel Philippines for being part of my life! You’ll remain the best factory across all sites worldwide! Mabuhay ang Cavite!
Paul Otellini have mercy on us! We’ll hoping Intel will go back again here in the Philippines in the future…We want Intel here!!!
God bless you all na lang….
This is a lesson of too much greed and selfish inside of the goverment kaya ano ng yari nagsara kasi dahil sa financial crisis. Our country supposed to be a 3rd world country bakit tayo magdedeal sa mga ganya companya yan tapos magsasara pala in 34 years. Sayang, kaya ano magdeal tayo sa ibang companies katulad ng AMD or Apple. Wag yung mga ganyan, its waste of time (34 years). Eh yung computer ko nga AMD Athlon X2 ko ng 5000+ buhay na buhay pa at mura pa kaysa yang INTEL na basura at mahal na produkto na hindi patok sa tao tapos in just 34 years later magsasara na….. WASTE OF TIME.
P.S.
WASTE OF TIME…. (kaya ano magdeal tayo sa iba, wag dyan)
I was just browsing articles about the closing of Intel, and I was surprised to see that this has been talked about since April 2008. Wala lang.. just heard it from the news last night and I was so surprised and felt so sad.
Hope all the employees of Intel will get reasonable separation pays and benefits, and hope all of them can find new jobs.
I rather have my own business instead of being laid off all the time…..txt me 09154529728 for those who wants financial freedom and tired of being laid off.
good job
It is also the Filipino’s fault why Intel is closing down. Looking at the reason, High Power consumption, we are one of the largest. We have a nuclear plant that we cannot use, because Filipino protest its use. So what do we expect, we use diesel fuels for our Power Plants. High Taxes, the Government should offer Intel and other company lower taxes, since they can also get taxes from the people who works in the company that pays taxes. Our Government must offer Multinational companies with Good Benefits such as lower rents. We are the one’s to blame for loosing this good companies.
Intel is asking its brilliant, experienced, and creative Filipino employees to train the engineers in China and Vietnam who will replace them. The gall of Intel.
bad news fro the Philippines and its people. A lot of employee becomes unemployed.Reason we can blame the government fro the crisis now.
guys, got this from an insider at intel corporation. it’s still classified information. intel is mulling at a comeback to the philippines. they’d had a very bad experience in their vietnam adventure. once numonyx (which used to be their flash factory in cavite before being sold off) closes down, they will reopen that plant to produce microchips. so, stay tuned!
I also heard this.. Intel is at Phils BOI (Board of Intvestments)on going application…
there are some interesting happenings inside the old Intel compound according to some remaining employees working in Numonyx. (Numonyx occupies the old CV2 Intel building). accordingly, the back of CV2 parking area commonly known to former Intel employees as “boracay area” is now being renovated. There is a mini park there now and on it are are white pebbles showing “welcome Intel”…..is this another sign??????? or does somebody just playfully did it? others said there is an on-going mass hiring in Javalera for Intel, age limit is 25years old… (probably for operators)…. stay tuned!
Interesting article, seems like all technology business in future will reside in China due to the abundance of people who will work for extremely little!
mbuti nga yan. kasi 80% ng employees dito mayabang, kurakot at akala nila never endin ang glory ng intel s knila. kaya nga yung iba, hirap n hirap mgmove on.
buti nga s mga abusadong employees!!
so agree at ur comment, been employee of intel cafeteria, i didn’t stayed longer due to the attitudes of intel employee