Intel to hire 800 Micron Israel employees

Former Micron employees who will join Intel will continue producing NOR Flash memory chips for Micron at the Kiryat Gat fab.

Intel Corporation (Nasdaq: INTC) and Micron Technology Inc. (NYSE: MU) have reached a deal on Micron's fab in Kiryat Gat. Intel will take over the fab, which it previously leased to Micron in 2010, and hire 800 of its employees. The deal is due to be closed during the fourth quarter.

Micron also works with hundreds of contractors and service providers, whose contracts will continue unchanged. The former Micron employees who will join Intel will continue the production of NOR Flash memory chips for Micron. When the production service contract expires, the employees will move to other jobs at Intel.

In December 2012, Micron decided to discontinue its Israeli options, and close its Kiryat Gat fab within two years, or sell it. The fab began life in 1998 as Intel Fab 18, and was part of Intel's spinoff of Numonyx. Micron acquired the fab as part of its acquisition of Numonyx in 2010. The fab's products are no longer at the forefront of processor production and cannot compete in the market.

"With this transaction, Intel secures the direct and indirect employment of manu employees and helps address a major employment issue in southern Israel, which would have resulted from Micron's decision to discontinue its operations in Israel," said Intel Maxine CEO Maxine Fassberg in a letter to employees. "This is great news for Intel and Micron employees in Israel, and for the State of Israel."

Fassberg concluded, "Intel does not comment on its future roadmap decisions. That said, I would like to emphasize that the transaction with Micron and the technology roadmap decisions are completely separate."

Published by Globes [online], Israel business news - - on September 29, 2013

© Copyright of Globes Publisher Itonut (1983) Ltd. 2013

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