Intel’s restructure brought unit closure in Shanghai
In order to streamline manufacturing operations in China, Intel Corporation, the giant company famous for its semiconductor manufacturing, last Thursday claimed the closure of a plant in Pudong of Shanghai.
Intel will continue its step of investment in China with investing 110 million dollars into Intel China Ltd. which is the company’s holding company locates in Shanghai.
Because of the gloomy outlook of financial condition, Intel made up its mind to better its structure of manufacturing recourses in China, said Nancy Zhang, Intel China’s director of public relation.
Intel’s Chengdu division, however, will take the resources of an Assembly and Test operations plant in Shanghai Pudong, which would be closed over the next 12 months, Zhang mentioned.
There is no need for the 2,000 employees of the closed plant to worry about their jobs, said Zhang, they will have selections. The unemployed will be transferred, according to Intel’s promise, to the Chengdu plant, Intel’s Dalian plant which is still under construction or other Intel China divisions.
It is necessary for Intel to take such strategic adjustment since it is a company with an international presence and has been influenced by the global recession, said Zhang.
However, the site of Intel China’s headquarters and its research and development base will be remained in Shanghai.
Intel will stick to its promise to the other operations in China, she said.
Intel will upgrade China’s traditional producing industry continuously and fulfill the countryside’s demand for information technology and keep on its social duty in China, said Zhang.
In the past 3 months, Intel has suffered 90 percent down in the profit, and during a interview with Bloomberg News, Paul Otellini said there was a bigger possibility of loss.
A loss will end its run of 87 quarters later. What is more, it will take more than 21 years turning a profit.
Intel’s profit keeps going down as the market expectations, mentioned Zhao Xiaoguang, an analyst with Dongfang Securities.
Downstream sellers shut down their need for semiconductors in an effort to buy their inventions, beginning in the last 3 months of 2008, said Zhao.
IT companies will suffer huge losses since the demand keeps shrinking, including Intel, he said. If we look around, nearly all the famous companies involving semiconductor manufacturer, such as Hitachi and NEC, are being hit deadly with huge losses.
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