No Job Loss in Intel Penang Closure

In another abrupt statement, Intel has refuted claim that its workers in Penang which are affected with the closing down of its two plants in the state will lose their job.

Instead, the employees will be absorbed by other Intel factories adjacent to the affected plants, or other plants in Malaysia. The new positions offered will be comparable to their last position in their previous plants.

With rumour about the layoff spreading fast, the company’s global headquarter in Santa Clara, California, was first to react by issuing a statement to rectify the matter.

According to them, the closing of the two assembly and test plants, the PG6 and PG7, to some extent, is due to ‘age’ factor – whereby they are considered the ‘older generation’ factories and are not able to keep up with the modern day demand.

Penang Chief Minister, Lim Guan Eng later followed suit by making similar response to the local media. Lim, however, is said to be unhappy over the choice of Penang sites over Kedah for shut downs.

Intel operates 6 plants in Malaysia, three in Penang, and another three in Kulim, Kedah. After the shut down of the 2 plants, Kulim will takeover Penang’s role as the company’s Asia manufacturing hub.

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