Oregon Public Broadcasting

Intel announced Wednesday that it will be closing five of its chip factories, including one in Hillsboro. As Kristian Foden-Vencil reports, that translates to a loss of about one thousand jobs in Oregon.

In response to an unprecedented drop in sales, the company is closing factories in Malaysia, the Philippines, Santa Clara, California, and at the 12-year-old, 200-nanometer fab at Ronler Acres.

The factories all produce older, larger chips, that aren’t as fast as the new generation of 32-nanometer wafers.

Company spokesman Bill McKenzie says up to 6000 people will lose their jobs worldwide.

Bill MacKenzie: “Intel made the announcements it did today because the economic downturn, it’s impact on our business has simply been more severe than we anticipated.”

Last week, the company reported a 90 percent drop in fourth-quarter net income. 

Intel says not everyone will have to leave the company, some may be offered work at other facilities.