Intel has decided to close its US factory in Hudson by the end of 2014, leaving 700 people without a job.
The plant was getting on a bit. It was built by defunct computer company Digital which was acquired by Intel in 1998. Chip making technology at the plant is more than 10 years old, and four generations behind the equipment used in Intel’s most advanced factories.
Intel had been using the plant to churn out low-end chips found in many electronic devices.
More than 100 workers will be laid off over the next three to four months. The remainder are to stay on until the plant is closed.
Intel said that some workers will be given a chance to seek other jobs at Intel and the rest will collect a severance package.
Mulloy said that the plant will run near full capacity until it’s closed, to fill existing orders, and to build up inventories of obsolete chips which will no longer by made once the Hudson plant is shut down.
Intel will continue to operate its R&D facility in Hudson which employs an additional 850 workers. This facility will continue in operation and its workers will not be affected by the job cuts, Mulloy said.