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A walk down the Yellow Brick Road of Malaysia's Corridor of the future

by Jeff Ooi, Malaysia

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Awaiting impact of Intel global shakeup

Sep 7, 2006 20:51

The semiconductor industry and people it employs are waiting in bated breath for the impact of Intel's global restructuring to unfold in Malaysia.

September 5, Intel announced plans for restructuring following an analysis of the company's structure and efficiency. The bottom line is to generate savings in costs and operating expenses of approximately US$2 billion in 2007, and further savings of US$3 billion annually from 2008 onwards.

It also means about 10,500 jobs will be cut by mid-2007 from the present 95,000 worldwide. The first 3,000 will go by the end of the year.

Today, Oriental Daily News revealed that Intel Malaysia has informed the Labour Office in Malaysia of the manpower cut some time ago. The retrenchment will likely be done via a voluntary separation scheme.

Meanwhile, news just broke that Intel Malaysia may close down its operations in Cyberjaya, though a relocation to Penang or the Kulim high-tech zone is on the cards.

The Cyberjaya office is symbolically significant for Malaysia's quest into the Knowledge Economy spearheaded by precision technology. In response to Malaysia's incentive schemes under the Multimedia Super Corridor (MSC) project, Intel opened its Cyberjaya operations in 2001. The software development operations have since grown to a staff force of 150.

Local media also reported that the restructuring is expected to affect Intel's chipset and central processing unit factories outside Malaysia, including the Philippines, China, Costa Rica and Vietnam.

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About Jeff Ooi

Jeff Ooi is an Internet and e-Business consultant based in Kuala Lumpur who's spent the last four years blogging internationally on the tech scene, on anything and nothing. Which doesn't really explain why most of his own technology is about three years out of date. He doesn't even own a PDA after his Palm V crashed. He's on 3G, though... Lemak Lemang refers to coconut-flavored sticky rice stuffed in a bamboo container.