May 2, 2007 – Intel is laying off 1000 workers at its site in Rio Rancho, NM (about 25% of the workforce there) as the company ends 200mm production there, and continues to ramp more advanced 300mm production with finer leading-edge process technologies, according to an Associated Press report.
Work on 200mm production at Fab 11 will stop at the end of August, and the affected employees will be given severance packages or options to apply for other jobs in the company, according to a spokesperson. “We’re able to produce more per employee,” said the spokesperson, quoted by AP. “It’s about how innovative we are and how productive we can be.”
Earlier this year Intel said it will spend $1.0-$1.5 billion to retool its 300mm Fab 11X facility in Rio Rancho for production utilizing 45nm process technologies, making it the company’s fourth factory to produce the 45nm chips by 2H08. Fab 11X, which currently encompasses 90nm/300mm production, was Intel’s first high-volume factory to produce 300mm wafers, starting in October 2002.