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SANTA CLARA, CA-Intel Corp. said Wednesday it will close two assembly test facilities overseas and halt production at wafer fabrication facilities here and in Hillsboro, OR, as it attempts to “align its manufacturing capacity to current market conditions.” The plan is to consolidate and streamline older manufacturing capacity without impacting the deployment of new manufacturing capacity.

Overseas, Intel says it plans to close two existing assembly test facilities in Penang, Malaysia and another in Cavite, Philippines. In the US, it will halt production at Fab 20, an older 200mm wafer fabrication facility in Hillsboro, OR, and the D2 facility in Santa Clara. Fab 20 totals approximately 600,000 square feet and is part of its Ronler Acres campus west of Portland. D2 is a 900,000-square-foot facility located behind its corporate headquarters.

The closures, combined with the shutdown of associated support functions, are expected to affect between 5,000 and 6,000 employees worldwide. The actions and the resulting layoffs will occur between now and the end of the year, the company said. Some affected employees may be offered positions at other facilities.

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