Irish plant does not compute

Posted on 22 Jul 2009 by The Manufacturer

Intel has announced plans to mothball one of its four fabrication plants in Leixlip, Ireland, resulting in the loss of 294 jobs.

The site is used to manufacture flash memory but Intel is blaming low demand for its processors. Analysts pointed to the fact that the site was not included in a joint flash memory venture between Intel and STMicroelectronics, along with a potential €100m aid package for Intel from the Irish Government which was blocked by the European Commission in 2005.

Total employment at the Leixlip site, located just outside Dublin, will now number just 4,200, having fallen from a peak of over 5,000.

“The affected employees will be given the same severance package that was on offer in the voluntary program earlier this year,” read a company statement. “At this difficult time, Intel management will be working closely with all affected employees to provide support and assistance.”

The Irish Times reports that the deal offered to the effected employees is eight weeks pay for each year of service completed.