This is a very sad news on our economy. One if Intel’s plant in Cavite has been there for 35 years and now it will be gone for good by the year end. At least there will be 1800 jobs cuts on the Philippine based plant. Not only on the Philippines but also in Malaysia, California and Oregon will be affected. Since they (Intel) have a manufacturing plant in China, it is evident that the company will transfer all it’s resources there where labor is cheap and the cost of living is very low. As they say, no news is a good news and it’s only January. This is the effect of the current global economic crisis which started early last year.
I fear many companies will affected by this decision specially those businesses like semiconductor wire bonding tools manufacturer. There was a multinational semiconductor wire bonding tools manufacturer I know and was operating here in the Philippines that have a manufacturing plant in China too and I fear that the same thing will happen and might be included to the rest of the 60,000 I.T. jobs that will be affected. Just search the internet for the news about the 60k jobs to know more about the details. And as for the semiconductor company I mentioned, the name of the company starts with the word “small” (no wonder it never grew up). I’ll give you a clue, just type the keyword “small wire bonding tools” on Google or Yahoo! and you will see it.
Written by Manuel
Manuel Montala was an online entrepreneur who enjoys blogging about entrepreneurship and gathering information for his blog to help budding entrepreneurs. You can also reach him on twitter: http://twitter.com/mmontala
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{ 2 comments… read them below or add one }
You are probably correct that INTEL would tranfer all its remaining resources in china INTEL plant. Because that would be the most business sense to do. But i have different reading on this, that the company is is closing the philippines, malaysia, california and oregon plant. “OR SOUNDING AN ALARM BELL” to tell uncle sam ” Hey! Uncle Sam! Bail us out! Help us! Just like what did to the 3 major auto companies, AIG, Bank of America, Freddie Mae. Or the very least pass law that would protect our business in our country.
The US governemnt has been allocating billions of dollars to help out financial institution so that they could start relending again. Which by the way, they are not doing.
Maybe the US government should take a look at debt moratorium / condonation, Moratorium on foreclosure of businesses and house morgagee for 5 – 10 years. Instead of handing trillion of dollars to financial institution which has no effect.
Yes that makes sense. Why handle billions of dollars to financial institutions?
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