Intel moving assembly operations from Shanghai to Sichuan

Source: Xinhua | 02-06-2009 08:03

SHANGHAI, Feb. 5 (Xinhua) -- Intel said Thursday it would shift some assembly and test facilities from this eastern financial hub to the inland province of Sichuan, a move likely to affect about 2,000 jobs.

The economic downturn has had an enormous impact on the semiconductor sector, forcing companies to take measures to cut costs, said Liu Liang, an analyst at Industrial Securities Co. Ltd.

Moving operations from Shanghai, a high-cost city, to a cheaper place like Sichuan might be an effective way to cope with the financial crisis, he said.

In addition, such a move could stimulate the economy in Sichuan, which was still trying to recover from last year's catastrophic 8.0-magnitude earthquake, Liu said.

The quake uprooted millions of people, leaving many without homes or jobs.

U.S.-based Intel announced the move in a notice posted on its website. The notice said the company would move a Shanghai-based assembly and test factory to Chengdu, capital of Sichuan, within 12 months.

The move will mean increased activity in Chengdu and a corresponding workforce reduction in Shanghai, which will affect about 2,000 employees, it said.

The company said it would offer positions to the employees either in the Chengdu factory, a plant in Dalian that is under construction, or other Intel China locations that need experienced staff.