Intel is planning to close down its Hudson chip manufacturing plant in Massachusetts, US, and lay off about 700 highly paid employees at the facility.
The US chipmaker revealed that the facility was being closed as it deploys redundant technology for producing low-end chips that generate less revenues compared to higher-end microprocessors used in PCs.
Reports reveal that the chipmaker would initially lay off 100 employees in the following three or four months, with the remaining would stay on until the complete shutdown of operations by late 2014.
According to Intel spokeswoman Anne Hurd, all the 850 employees at the Hudson site will be offered jobs within Intel, but probably at its manufacturing facilities in Oregon or Arizona.
Built by Digital Equipment and acquired by Intel in 1998, the facility makes a 200mm wafers and 300mm chips.
Massachusetts Housing and Economic Development Secretary Greg Bialecki said in a statement that the first priority is working closely with the company and affected employees to ensure all impacted workers have what they need to make successful transitions to new jobs here in Massachusetts.
"While we are obviously disappointed by today's news, we know that our manufacturing industry is on the rise in Massachusetts, and will continue to play a significant role in the success of our economy," Bialecki said.
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