Intel has been running their Cavite plant for decades now. The one in Bangkal, Makati (near South Super Highway) was abandoned a couple years ago. During our last podcast, Jomar mentioned that Intel is allegedly leaving the Cavite plant from friends/sources close to him who used to work there.
I’m not sure if this rumor is true or if it’s out in the news already (I Googled it and there’s nothing). However, while listening to TWiT 93: GMT (34:50), John C. Dvorak mentioned that Intel is putting up a $2.5 billion fabrication plan in Dalian City, China. The story which released last March can be found here.
Why would Intel leave the Philippines for China? Cheaper labor again? This is something to watch out for if indeed there’s truth in this story.
Intel Philippines is scaling down its operations. The microprocessor plant will now be moved to China and perhaps Vietnam. Its Flash plant has been sold off. What remains is the small board-making and chipset plant.
Philippines used to have an edge when it comes to technical manpower. But both China and Vietnam are now catching up, at cheaper cost. Not to mention that price of electricity here is expensive, and tax incentives offered by the government are no longer attractive (compared to other Asian countries). The strong peso is also hurting exports.
I won’t be surprised if Intel will be gone in the Philippines give-or-take 3-5 years from now.
aysuuuuuuuuuusssssssssss…….all intel facilities and the likes were transfered to china na!….as in!…pati cavite at mga tao….e pinagbabayaran na nga nila ang mga tao nila kasi hinde nila matanggal..kaya hinainan nila nang tig 1 million plus computer package!>..san ka pa!?…..wag na kayo magulat…..kasi….Philippines were always stepping stone for trial and error mode nang isang company……kaya madali silang makapag adjust sa China…..kaya nga ung mga taga intel naman e hirap maghanp work kasi binabarat na sila pagpunta nila sa china.at mahirap rin maging boss kasi mas boss siempre ang mga chinese dun!……anyway, if u got to visit not EPZA companies..mapapansin mo ang marami e mga korean at taiwanese na!..kasi yan ang mahigpit na competitor nang China.while some japanese companies e na eenganyo na ring lumipat sa china..like toshiba nidec and so on….while some part of them e di pa rin maiwan ang Pinas kasi may mga magagaling nga tayo….fyi
hi guys, i’m working with Intel, and we haven’t heard anything about it in fact i’m working to support their manpower needs.. most of the positions that i’m working are managerial positions.
well…hiding something from the staff whats really happening is another story :)
Why is Intel in Cavite in the first place? In the middle of nowhere? Why not transfer to Sta. Rosa, Laguna where the business parks are closer to SLEX. Could it be somebody got rich in choosing Cavite?
I used to work in both Makati and Cavite factories. Makati was strictly for Flash memory which Intel recently sold off. It was probably closed to position for the sale. Plus even the Japanese subcon factories were cheaper.
Overall problems are infrastructure – roads, electricity, holidays, and turnover. The Makati plant still had a house surronded by the plant. The owner wouldn’t sell and the gov’t can’t use emminent domain. Getting to Cavite is tough. 2 lane roads and for a long time one of the lanes had an electric pole a meter inside a lane. What happens when another earthquake hits and knocks out some of the bridges? Electricity prices are among the highest in Asia and among the most unreliable. The gov’t is always declaring a new holiday making production planning tougher. Finally, once management gets some experience, they either leave for better pay or retire on what they’ve earned.
But it was my favorite job at Intel. There’s a lot of potential if people focus on the strengths – teamwork, can-do attitude, low cost, and easy gov’t access.
The Cavite plant is not running for decades. It was built in the late 90s. The original Makati plant had to be closed to consolidate all manufacturing operations into one site.
Intel is not leaving Cavite. Of course there have been changes in terms of what product lines that the Cavite plant will do (since some of them will be moved to CHina while those from China will be transferred to Cavite)
“Intel is allegedly leaving the Cavite plant”
this is NOT true.
Intel moved out of from Makati to Cavite to expand due to the growing demand.
Are we seeing a trend here? Maybe someday, all the call centers will go to China as well (once they learn how to speak fluent English).
The FedEx hub moving to Guangzhou (I read it will be open by 2008.) No surprise there, it’s probably the world capital of manufacturing.
FedEx used to have their regional hub here in Subic years ago until they left for HK or China.
Besides, Intel may be an “IT Company” but their plants around the world are basically in the Manufacturing Industry.
The real “IT” part of Intel is in their research labs in the US, Israel, and other places with lots of Ph.D’s to power their activities.
And once Chinese became more fluent in English… “Goodbye Call-Centers” for the Philippines.
China is indeed a sleeping giant.
If this is really true, then it is gonna be bad news for the Philippine economy and as JC said, more unemployment. :(
@ JC
Never ever say that agriculture is useless dude. Think of the 60-70% of Pilipinos who still depend on agriculture for their livelihood. Besides, where would we get our food to eat?
From Google Reader? Peace! :D
I say the government must develop agriculture because history has proven that the industrialized nations we so envy and dream of migrating to started out as agricultural societies and still are dependent on agriculture up to now.
It’s sad that Intel is leaving, but we can’t depend on the IT sector alone to prop up the economy, because our economy is not yet IT-based.
Let’s take it one step at a time.
Probably the businesses there are protected from extortionists like the police, government officials.
Plus, no labor problems or unions in China!
@JC
you know that it is hard for the Philippine Gov’t to drop the agriculture sector especially when most of those who are in the position own haciendas and farms.
Another thing is, labor in China is really cheaper than labor here in the Philippines. If I will put myself in the place of Intel investors and Executives, I’d rather put up a plant in China than in the Philippines.
So now, let us just hope that our politicians or some of them drop in this blog even just for a while and see this.
yup, heard about this last holy week from my kasama during the visita iglesia.
Probably lower labor costs (remember, China’s average family size is one child while in the Philippines is more more than 2, right?).
And, agriculture is not useless.
Okay now that’s sad. First we lost one of the biggest revenue of our barangay (Bangkal), now they’re the leaving not just a barangay, or a city, or a province, they’re leaving the Philippines.
More unemployment again :/
The Philippine government should really do what Korea did – drop the becoming-useless agriculture sector and adopt something modern! We keep on saying Filipinos are intelligent and wise people but the government is not tapping our skills!!
Hope Intel will not closed down their plant here, or at least, their Philippine plant is still their main/major plant.