Intel Corp will take its Fab 1 chip-making plant in Santa Clara off line in the next 12 to 18 months and eventually turn it into a manufacturing support facility, because the plant is no longer cost-effective as a production facility; it makes memory chips on 100mm silicon wafers where newer plants are larger and use 150mm wafers: Intel will work aggressively to place the plant’s 400 workers into new jobs with the company over the next 18 months; it will take a reserve in the current quarter to cover all of the costs associated with the switch, but sees no material impact on fourth quarter results because unusually high royalty and licensing revenueswill offset the charges it takes.
