DailyTech - Intel Reorganizes NOR Flash Division But Promises No Lay-offs

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IT Intel Reorganizes NOR Flash Division But Promises No Lay-offs
Tuan Nguyen (Blog) - May 12, 2006 9:30 AM

3 comment(s) - last by KristopherKubi.. on May 13 at 2:25 PM

"Job security" remains largely an oxymoron

DailyTech previously reported that Intel was already taking actions in its plan to restructure the company. Going are such locations as Intel's R&D division in Glasgow, and a manufacturing and design location for network transponders in Newark, California. It's clear that Intel is taking its reorganization plan to a global scale.

Despite launching a new joint venture with Micron earlier this year, Intel will be reorganizing its NOR flash memory division as well. Previously, the NOR flash memory reported to Intel's main chip design division, but Intel plans to have the NOR division report to the same management as IM Flash Technologies -- its joint NAND flash memory company with Micron.

Intel said to reporters that it will not be laying off employees in its NOR flash division. This comes at a time when layoffs have been confirmed at Intel's other locations. The NOR flash division will be reporting to Brian Harrison, Vice President of Intel's flash technology group. Harrison will also be in charge of IM Flash Technologies. The NOR flash group will continue to develop and manufacture the technologies that it had been working on all this time.

Many analysts believe that due to strong competition from AMD, coupled with poor profits from Intel, will only continue to cause more lay-offs at the Santa Clara chip giant. In the market so far, AMD has managed to reduce Intel's market share to 80% and the ownership continues to decline for Intel.

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Good move by Intel

By DallasTexas on 5/13/2006 10:01:12 AM , Rating: 2

Since non-volative memory is cleary a commodity business, why burden that business unit with the high capital costs of their microprocessor unit? This is the right move, NAND and NOR continue to grow enormously and having their own fab and managemet structure makes total sense.

OR

Intel is fighting for it's life and scrambling to make a profit as AMD continues to hammer away. With already at 20% share of the business, AMD is taking the giant down. Yeah, that's why their doing this.

RE: Good move by Intel

By KristopherKubicki

(blog) on 5/13/2006 2:25:34 PM , Rating: 2

The only argument I have with that is that Intel put a lot of attention on its NAND based devices at IDF last quarter. Things like putting a few GB of NAND on the northbridge to act as a buffer between the hard drive/optical drive for super quick caching. If this catches on, having your own NAND facilities might not be a bad idea.

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