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.
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.
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.
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...
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.
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.
Pretty much expected, new 14nm fabs are getting ready to go in Arizona(and pretty soon in Ireland), so the outdated ones will get shut down. Instead of Costa chips we will now get Irish chips
With all the chip designers that Apple has picked up, maybe they could buy it from Intel and use it to further their development. It may not be possible to retool the fab into what they need, just wishful thinking that they could save those highly skilled worker's jobs. It would be such a waste to let all that experience sit there idle.
Also, I have had some of my best clocking chips over the years from Costa Rica
As unfortunate as it is, Intel needs to restructure it's fixed overhead to remain competitive going forward. There will be more cuts coming. But, Intel has to become nimbler given where the competition is headed.
I know that this is impacting a ton of people's lives, but I can't stop looking at the title of the article thinking that it should be "shuts" and not "shutters". I suppose, both work, but my brain won't let it go.
Really does suck for the works though, the plant will still be there though so I wonder if someone else might jump in and repurpose it?
I know that this is impacting a ton of people's lives, but I can't stop looking at the title of the article thinking that it should be "shuts" and not "shutters". I suppose, both work, but my brain won't let it go.
Really does suck for the works though, the plant will still be there though so I wonder if someone else might jump in and repurpose it?
Intel will still operate mutliple fabs in multiple locations, instead of asking for Costa Rican chips or Malaysian chips you will be asking for Arizona Chips or Irish Chips
Well I understand that but they are completely ruled by the corporate greed of their investors which is bad. Job security should go before 0,01% extra dividend for the investors.
Quote:
Originally Posted by kpriess
Do not misinterpret; "happiest place in the world" is a local term to describe how broken the culture and government is..
You're from Costa Rica hope you weren't a part of them workers.
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