Company News
Intel spends big in USA after five
global fabs go
IN what will be seen as a major blow to when combined
the global semiconductor industry, Intel with associated
Corporation has disclosed plans to support functions,
close five plants and reduce staff by at are expected to
least 5000. The restructure of its affect between
manufacturing operations and aligning 5,000 and 6,000
of its manufacturing capacity is being employees
attributed to current market conditions. worldwide.
The company will consolidate and However, not all employees will leave manufacturing facilities will produce the
streamline some older capacity without Intel; some may be offered positions at most advanced computing technology
impacting the deployment of new, other facilities. The actions will take in the world. The capabilities of our
leading-edge 45-nanometer and 32- place sometime between now and the 32nm factories are truly extraordinary,
nanometer manufacturing capacity. end of 2009. and the chips they produce will become
Meanwhile Intel President and CEO Despite the cuts Intel has revealed the basic building blocks of the digital
Paul Otellini has announced the its investment commitment in the USA. world, generating economic returns far
company would spend $7 billion over The investment funds deployment of beyond our industry.”
the next two years to build advanced Intel’s 32 nm manufacturing technology Intel’s investment will be made at
manufacturing facilities in the United that will be used to build faster, smaller existing manufacturing sites in Oregon,
States. chips that consume less energy. The Arizona and New Mexico and will
The company plans to close two commitment represents Intel’s largest- support approximately 7,000 high-
existing assembly test facilities in ever investment for a new wage, high-skill jobs at those locations,
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Penang, Malaysia and one in Cavite, manufacturing process and comes at a part of a total Intel workforce of more
Philippines, and will halt production at time when most companies are having than 45,000 in the U.S. Intel, while
www
Fab 20, an older 200mm wafer to pull back their investment generating more than 75 percent of its
.eur fabrication facility in Hillsboro, Ore. commitment. This is in line with Intel’s sales overseas, carries out roughly 75
oasiasemiconductor
Additionally, wafer production strategies in previous downturns. percent of its semiconductor
operations will end at the D2 facility in “We’re investing in America to manufacturing in the U.S. At the same
Santa Clara, California. This will mark keep Intel and our nation at the time, about 75 percent of the
the end of Intel manufacturing in Silicon forefront of innovation,” CEO Otellini company’s R&D spending and capital
Valley. The actions at the four sites, said in a statement. “These investments are also made in the U.S.
.com
square4
Issue I 2009
ST awarded damages
STMICROELECTRONICS have In addition, ST is entitled to retain impairment charges for a cumulated
announced that an arbitration panel of the about $25 million interest award amount of $173 million. Payments by
the Financial Industry Regulatory which had already been paid. As Credit Suisse pursuant to the arbitration
Authority (“FINRA”), in a full and final previously noted in its 20-F filing of award will result in a further
resolution of the issues that had been March 2008, STMicroelectronics N.V. strengthening of ST’s financial position
submitted for determination have had instituted the arbitration against by increasing current liquidity by about
awarded STMicroelectronics, in Credit Suisse in connection with the $406 million, against a $242 million less
connection with the sales by Credit unauthorized purchase by Credit Suisse balance in Non Current Assets.
Suisse Securities (USA) LLC (“Credit of collateralized debt obligations and At collection, STMicrelectronics will
Suisse”) to the Company of credit link notes instead of the Federally transfer ownership of its portfolio of
unauthorized “auction rate securities,” guaranteed student loan securities that unauthorized “auction rate securities”
an amount of approximately $406 had been specifically mandated by the currently with Credit Suisse, and should
million comprising compensatory Company for purchase. be able to record a pre-tax gain of
damages, as well as interest, attorney’s Over time, as the credit market about $163 million to reverse
fees, and consequential damages, which negatively developed, the Company impairment losses accrued in Income
were assessed against Credit Suisse. recorded other-than-temporary Statement of prior periods.
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