PHILIPPINES--The local government of Cavite has indicated an interest in holding "talks" with Intel regarding the chipmaker's plan to shut down its test and assembly hub in the Philippine province.
In an interview with ZDNet Asia, Cavite Governor Ayong Maliksi expressed worry over Intel's plans, specifically, its impact on employment in the province. Located just south of Manila, Cavite houses several economic and technology zones.
Noting that Intel is "a big U.S.-based company", Maliksi said his government is concerned about "the prospects of having thousands of unemployed" resulting from the possibility that Intel will close its facilities in Cavite and leave some 3,000 workers unemployed.
News broke last month that the semiconductor giant was studying "options" for its Philippine test and assembly plant, including the possibility of shutting down the facility. Intel was the first U.S. chip company to set up shop in the country in 1974 and, to date, has invested some US$1.5 billion investments in the Philippines.
Maliksi said the local government "is interested" in holding talks with Intel representatives to discuss the issue, but declined to give details about any possible negotiation with the U.S.-based company.
The Philippine connection
Aside from generating employment in Cavite, Intel has a strong presence in the province particularly in various corporate social responsibility programs the company regularly holds with the local government.
The chipmaker also exports most of its products assembled in the Philippines, generating income for the government in the form of taxes.
An Intel official disclosed that the company is set to make an announcement in June regarding the impending closure of the plant.
Teresa Pacis, external communications manager at Intel Philippines, also said it would "welcome" talks with the government regarding its plans.
Pacis, however, said the company has yet to make any final decision. She added that Intel was still in the process of determining what to do with the sprawling facility, which processes certain microprocessors and flash memory, among other components.
"Intel will make a formal statement in June," Pacis said.
Joel D. Pinaroc is a freelance IT writer based in the Philippines.
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