HP to close Oregon fab, affecting 440 jobs
By Will Wade
CORVALLIS, Ore.--Hewlett-Packard Co. is closing down its semiconductor manufacturing operations here, and shifting its ASIC production efforts to Fort Collins, Colo. The news comes as part of a company-wide cost-cutting drive announced last week, that included a voluntary severance plan and plans to put an ongoing fab construction at the Fort Collins site on hold indefinitely (see Oct. 5 story).
HP expects to shutter the fab here by the end of next April, and some 440 employees will be offered other jobs within the company or will utilize the voluntary severance option. The company hopes to trim its total worldwide payroll by as many as 2,500 positions, and will take a charge of $150 million this quarter to fund the program. Eliminating chip production in Corvallis will cut 8% of the site's 5,500-member workforce. In addition to wafer processing, the facility produces inkjet cartridges and supplies, portable computers and printer systems.
The company cited the ongoing semiconductor slump, especially the soft economic conditions in Asia, as motivations behind the decision.
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