Advertisment

Intel boosts investment in Philippines chip plant

author-image
CIOL Bureau
New Update

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.

Advertisment

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.

Advertisment

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.

tech-news