Intel closing Oregon plant, 4 other facilities

SANTA CLARA, Calif. — Intel said today that it is consolidating its manufacturing operations as a part of a restructuring bid that will affect thousands of jobs from the U.S to the Philippines — including Oregon.

Between 5,000 and 6,000 employees will be affected, though some may be offered posts at other facilities, the company said.

The world's largest chip maker will halt production at a plant in Hillsboro, Ore., and is closing two assembly test facilities in Penang, Malaysia, and one in Cavite, Philippines, It will also end wafer production at a facility in Santa Clara, Calif. All five are older factories, the company said.

The city of Hillsboro expects Intel to cut about 1,000 jobs, said city spokeswoman Barbara Simon. She said the company employs about 15,000 people in Hillsboro, many in research and development.

The company said it would halt production at the Hillsboro Fab 20 plant, which produces an older generation of wafers.

"This is disappointing, no doubt," Simon said. "But they're still going to stay in Hillsboro despite closing Fab 20."

Intel currently employs about 84,000 workers. The company expects to complete the job cuts by the end of the year.

Last week, Intel posted a whopping 90 percent decline in its fourth-quarter profit, hurt by declining demand for its microprocessors — the brains of PCs — amid the economic downturn.

The results, however, matched Wall Street's expectations as the company had twice lowered its sales forecast.