Intel Corp. will extend the life of its Colorado Springs plant, originally slated to end production in October, according to company officials.
The semiconductor manufacturer credited stronger-than-expected demand for semiconductor chips that help enable Wi-Fi capabilities in Intel’s line of Centrino processors found in laptops.
Sales of laptops have been on the rise for several years, as they match – and in some cases exceed – the processing and storage capabilities of desktops. According to research firm IDC, shipments of laptops in the U.S. are expected to reach 31.7 million this year, compared with 26.1 million units shipped in 2006.
In January, Santa Clara, Calif.-based Intel said it would place the facility up for sale and had hoped to sell the manufacturing plant in a deal that would keep existing employees working.
Despite the increase in work, Intel still plans to close the facility in late January. There have been no serious offers for the plant.
“We’ve had some interest since January but nothing definitive,” said Intel spokeswoman Judy Cara. “We’re still hoping to sell it with the equipment still in place. If it doesn’t pan out, we’ll have to reconsider.”
Cara said Intel would not continue to extend contracts with the facility. The plant has 400 employees, down from the 1,000 it had in January.
“Some (workers) have already gone to other Intel sites. Some have chosen to secure employment with another company. … They wanted to stay in the area. It’s a mixture,” Cara said. “We have enough people to complete the production we’re doing.”
The 400 remaining plant employees will be eligible for Intel’s year-end bonus and retirement-plan payments. More than half of them will stay after production ends to complete the closing of the plant, Cara said.
Staff writer Kimberly S. Johnson can be reached at 303-954-1088 or kjohnson@denverpost.com.
