By Gregory Quick,
Intel is slowly phasing out its finished-assembly program, through which it builds systems for original equipment manufacturers, because of a decline in demand as manufacturers develop their own programs.
Santa Clara, Calif.-based Intel (company profile) will begin eliminating that segment of its facility in August and complete the move by January. The company's workstation business, as well as some R&D, will still be housed at the Dupont plant.
"We are going to outsource the assembly of systems, but will continue to build our own motherboards," a company spokesman said. Intel told staffers at the facility about the phase-out last month.
He said the business has been declining in recent months as manufacturers developed their own build-to-order capabilities and it no longer makes sense for Intel to perform the assembly itself.
Approximately 650 jobs will be affected by the move, and Intel is working to find positions for the employees either in-house or at other companies.
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