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Intel Philippines Closing its Doors in Mid 2009, What Happens Next?
comment 3 Comments January 23, 2009 – 4:26 am
popping..

As the global economic crunch continues, American company Intel Corporation: the world’s top chip maker, the largest semiconductor company and inventor of the x86 series of microprocessors (the processors found in most personal computers), proves that even they are not impervious to the deep recession its own country is going through; that they are capable of being hit and injured strong as they are just like any struggling small business players.

By the second quarter of this year, Intel will close its doors to the Philippines after 12 years of operation in its Cavite Plant and 34 years of doing business in its Makati City operations. By the end of 2009, it would have also closed two existing assembly test facilities in Penang, Malaysia, halt production at an older 200mm wafer fabrication facility in Hillsboro, Oregon (USA) and end wafer production operations right at the D2 facility in Silicon Valley, Santa Clara, California (USA).

This huge announcement was made the day after Barack Obama was sworn into office as the new President of the United States.

Intel Technology Philippines, Inc. (ITPI) the local subsidiary of Intel Corporation, is Intel’s second offshore assembly operations center in Asia, and the first American multinational and semiconductor company in the Philippines.

intel_wafer_processor

Currently, there are 41 private-owned and 4 government owned economic zones in the Philippines. The biggest exporter is the private-owned Gateway Business Park in General Trias, Cavite where the Intel plant is situated. Intel Philippines is considered the preeminent high volume assembly/test site of Intel and the Cavite site is counted among the prime movers in the Philippine electronics and semiconductors industry. To date, total investments in the Philippines is USD 1.51 billion.

According to the latest September 2008 list from the Philippine Economic Zone Authority, 345 enterprises engaged in the manufacture of Electronics and semiconductor products are registered with them. Here’s 20 of the popular companies (including Intel) with their dates of registration and who owns them:

Company

Nationality

Date Registered

ADVANTEK, INC.

100% American

May 2002

CLARION MANUFACTURING

100% Japanese

October 1989

EPSON PRECISION (PHILIPPINES), INC.

100% Japanese

February 1995

ESSILOR MFG.

100% French

April 1979

EURO-CB (PHILIPPINES)

100% Belgian

January 1989

FUJI ELECTRIC PHILIPPINES,INC.

100% Japanese

May 1995

FUJITSU COMPUTER PRODUCTS

100% Japanese

March 1995

GLOBETRONICS PHILIPPINES, INC.

100% Malaysian

October 1997

HITACHI GLOBAL STORAGE TECHNOLOGIES

99.9996% – Dutch
0.00032% – Japanese
0.00008% – American

May 1994

INTEL TECHNOLOGY PHILIPPINES, INC.

100% American

December 1995

CLOSING 2009

LEXMARK INTERNATIONAL

99.99986% -Swiss
0.00014% – (Filipino, French, American, British)

February 1999

MITSUMI PHILIPPINES

100% Japanese

May 1980

NEC TOPPAN CIRCUIT SOLUTIONS

99.99% – Japanese
0.01% – Filipino

April 1996

OLYMPUS OPTICAL TECHNOLOGY

99.997% -Japanese
0.003% – Filipino

November 2001

PANASONIC COMMUNICATIONS PHILIPPINES

100% – Dutch

September 2000

PENTAX CEBU PHILIPPINES

100% Japanese

September 1990

ROHM ELECTRONICS PHILIPPINES, INC.

80% – Japanese
20% – Singaporean

October 2000

SAMSUNG ELECTRONICS PHILIPPINES

100%  Korean

February 2001

SANYO SEMICONDUCTOR MANUFACTURING

100% Japanese

April 1995

TDK FUJITSU PHILIPPINES CORPORATION

65.76319% – Japanese
34.2368% – American
0.00001% – British

February 1997

Which of these companies will fold next?  The Intel plant shutdown is a devastating blow to the Philippines and makes one wonder who is next down the line? About 3,000 employees will lose their jobs and thousands more indirect jobs will be affected in allied services and industries when Intel Philippines cease to exist. What happens next? Will there be a domino effect in companies with factories and offices in the various Philippine special economic zones?

The impact of this enormous loss will surely be felt in years and years to come. It will be hard to recover. But we will… eventually. Once the global economic slump is over, we will. The world economy is already at its worst. How worse could worst go right? When you’re down and down, there’s no place else to go but up and up!! Am I delusional for keeping faith in how my country the Philippines will fare amidst the economic downturn? I wouldn’t like to believe so. Yet I am still not over the fact that the Philippines continue to rely majorly on its biggest export- its human resources as a way out of bad governance! That’s another story…

Read about Intel’s economic impact in the Philippines and weep in our loss…. after that, pick up the pieces!

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