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[TweakTown] Intel shutters its doors in Costa Rica, lays off 1,500 workers

post #1 of 33
Thread Starter 
Quote:
Earlier today, Intel announced that it will be closing the doors on its assembly and testing facility located in Costa Rica. This unfortunate announcement will result in the loss of jobs for more than 1,500 employees, and will most certainly cause a ripple effect in the economy close to the facility.

Source

No more Costa chips!
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post #2 of 33
Quote:
Originally Posted by robbo2 View Post

Source

No more Costa chips!


wow this is unexpected.
post #3 of 33
Quote:
Originally Posted by mk16 View Post

wow this is unexpected.

Believe they re-furb'd the old CH2 site fab for this...?
post #4 of 33
Indeed, an unfortunate move that is affecting a lot of people, this was a gossip mumbling in my country since 6 weeks ago. This has been a massive earthquake in the economy here. Also Bank Of America is closing their nearshore support office here, basically in 2 days, 3000 people unemployed. Intel closure also affected CRs exports and GDP income, 20% and 6% respectively.

The CEO and the executive team had a meeting on Monday with the President to explain the reasons why the plant was closed. Seems Asia and some operational realignment that is taking place are the culprits for this decision.
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post #5 of 33
Quote:
Originally Posted by mingocr83 View Post

Indeed, an unfortunate move that is affecting a lot of people, this was a gossip mumbling in my country since 6 weeks ago. This has been a massive earthquake in the economy here. Also Bank Of America is closing their nearshore support office here, basically in 2 days, 3000 people unemployed. Intel closure also affected CRs exports and GDP income, 20% and 6% respectively.

The CEO and the executive team had a meeting on Monday with the President to explain the reasons why the plant was closed. Seems Asia and some operational realignment that is taking place are the culprits for this decision.

That is the problem with having big companies in relatively smallish countries. Some wig in corporate HQ decides to flex its wings and all the sudden you have a townful of unemployed people. Works the same in larger counteries as well ofc, but in larger economy I'd imagine it would be easier to find new job that more or less fits the specialty of these people.

At first when noticing the headline I expected this to be kneejerk reaction to some kind of local political thing - sometimes when local politicans get all worked up about redistributing wealth and slapping excessive taxes on corporations these things can happen, although I'd imagine given the Intel's size they would probably been in pretty good position to argue against this.
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post #6 of 33
Quote:
Originally Posted by Carniflex View Post

That is the problem with having big companies in relatively smallish countries. Some wig in corporate HQ decides to flex its wings and all the sudden you have a townful of unemployed people. Works the same in larger counteries as well ofc, but in larger economy I'd imagine it would be easier to find new job that more or less fits the specialty of these people.

At first when noticing the headline I expected this to be kneejerk reaction to some kind of local political thing - sometimes when local politicans get all worked up about redistributing wealth and slapping excessive taxes on corporations these things can happen, although I'd imagine given the Intel's size they would probably been in pretty good position to argue against this.

Agree, is unfortunate, but as you know...nothing is written on stone. The presidential elections were over during the weekend, then on Monday this bombshell was dropped. The current President and the elected one had meetings with Intel, both assured this is not related to the new elected president or new government coming in May 8th.

IF I was the prez, I would talk to GloFo and see what can be done, some deal with assets between Intel and GloFo to save the day and keep at least 50% of those jobs online...
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post #7 of 33
All my recent intel cpu's was from Costa Rica. Rip fab
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post #8 of 33
So it will be Malaysia chips only?
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post #9 of 33
Quote:
Originally Posted by Clocknut View Post

So it will be Malaysia chips only?

Considering that flight 370 had Freescale technicians onboard and a patent was registered 4 days after the plane dissapeared to improve the yield on silicon wafers, maybe a deal was struck between Intel, Freescale (parent company being the Carlyle Group) and the Malaysians? To shift production to Malaysia? Just my conspiracy theory mind going off on one lol.
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post #10 of 33
Intel built new fabs for 14nm in USA. So most likely future chips will come from there.

I guess now that they are cutting down on the 32nm and above, they won't need the old facility.
I just wonder if someone is going to buy the facility from them (like tsmc which still have amount issues) or its going to be demolished.
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