What Does Intel’s Factory Shutdown Mean in Massachusetts?
Hudson, Massachusetts, is about to have a lot of unhappy Intel (NASDAQ:INTC) workers on its hands, because the chip manufacturer announced Thursday that it is closing its only factory in the state, resulting in the loss of 700 high-paying manufacturing jobs. Workers will be offered a severance package and will receive assistance finding new jobs, but for many, the news is still devastating, especially considering one of out three factory jobs in the state is in the high-tech manufacturing sector.
According to the Boston Globe, Intel is closing its Hudson plant on account of the factory’s outdated technology and chip products that are only able to be used in low-end applications. The world’s largest leading chipmaker bought the plant from Digital in 1997 for $700 million, but Intel usually designs its chip factories from the ground up in order to construct identical chip-making technology, and that’s why the Hudson plant stands out.
Its machinery is more than a decade old and can only produce chips used in relatively low-end applications like automotive entertainment systems and factory automation equipment, according to the Boston Globe report. Thus, as Intel turns its attention to the more lucrative divisions of its business, specifically high-end microprocessors used in PCs and tablets, it now is planning to close its outdated plant that Nathan Brookwood, a chip industry analyst for Insight 64 described to the publication as “always the odd man out.”