HONG KONG: Intel Corp, the world's top semiconductor maker, said on Tuesday
it will invest US$80-100 million this year to upgrade the technology of its test
and assembly facility south of Manila.
The investment and consolidation exercise will upgrade the facility in Cavite
to support Intel's current-generation Pentium 4 line and other microprocessors,
the company said. Intel also said it will shift test, assembly and manufacturing
operations to the Cavite plant from one in Makati in the Manila area, about 60
kilometres away, and will phase out production of older products.
Spokeswoman Chit Ventura said it is possible that jobs could be lost as a
result of the consolidation, but said it was too soon to know how many. While
some cost savings will be generated by shifting production to Cavite, Intel said
savings could not immediately be quantified.
About 4,500 people currently work at Intel's Cavite plant, while 1,500-2,000
work in Makati. Intel noted that Philippines President Gloria Macapagal Arroyo
has encouraged businesses to shift operations away from the congested
metropolitan Manila area.
California-based Intel said several functions will remain at Makati,
including sales and marketing, call center operations, and design of flash
memory chips. Intel said the additional funding brings its investment in the
country to US$1.3 billion, and makes the Philippines the firm's biggest assembly
and test site.
Last week, Intel posted fourth quarter profits and revenue that exceeded Wall
Street forecasts, although the company said it did not see signs of economic
recovery following the worst year in the chip sector's history, and said capital
expenditure for 2002 would fall by 25 per cent from US$7.3 billion in 2001.
(C) Reuters limited.