Intel plans to restructure its China operations due to weak global economic conditions, including shutting a factory in Shanghai.
The chip maker's plan to build an advanced 12-inch (300-millimeter) chip factory in Dalian, located in China's northeast, remains unchanged, Intel said in a statement.
The restructuring plans will mainly focus on closing a chip testing and assembly plant in Shanghai and moving operations from there to a facility in Chengdu, in western China, over the next 12 months.
The plant closure could affect up to 2,000 people, but Intel said it will offer employees the chance to move to Chengdu or Dalian.
Intel will keep its China headquarters in Shanghai as well as maintain its research and development (R&D) operations there. The company will also increase by US$110 million its registered capital in its investment holding company in Shanghai, Intel China Ltd.
Operations at the Intel China Research Center in Beijing and the Intel Capital China Fund II will remain unchanged, the company said.