The world's largest chip maker Intel Corp said Thursday it would shut down an assembly and test factory in Shanghai and move it to a city in China's far west due to the global economic crisis.it was still going ahead with the construction of a plant in the northeast Chinese city of Dalian. The cost of this plant was previously given as 2.5 billion dollars."The economic downturn has had an enormous impact on the semiconductor sector, forcing companies to take measures to cut costs," said Liu Liang, an analyst with Industrial Securities, according to state-run Xinhua news agency.The consolidation, which will take place over the next 12 months, came "as a result of current economic conditions", the statement said.
The move will affect about 2,000 employees, who will be offered jobs in the western city of Chengdu or other Chinese locations where Intel operates, the US-based company said in a statement.Intel plans to keep a research and development centre in Shanghai, which will also remain the China headquarters for the company.
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