Intel Postponing Office Projects, Forging Ahead with Fab Plants

HILLSBORO, OR-Intel is halting infrastructure work for its $400 million West Union research and development campus here and on projects in Puerto Rico and Folsom, CA. The Santa Clara, CA-based chipmaker reportedly will be postponing all office projects but continue to develop chip fabrication facilities. The explanation is a slowing economy that already has hurt computer makers’ revenues and is taking its toll on Intel this quarter in the form of slumping chip sales.

In July, Intel predicted that by the end of next year it would be opening the first building of a new four-building R&D plant on 92 acres the chipmaker has agreed to purchase from Westmark Properties. The first building is a sure thing, the company said, and will employ about 1,500 people. Assuming the best possible business conditions, the company planned to build out the site over the next 15 years, employing as many as 6,600 workers by 2015. Already Oregon’s largest industrial employer, Intel currently has 16,000 workers in Oregon.

Intel Oregon spokesman Bill MacKenzie tells GlobeSt.com the cutbacks will not affect its commitment to occupy two of three 52,000-sf flex-office buildings under construction in Birtcher Real Estate Group’s 213-acre AmberGlen Business Center in Hillsboro. Intel’s new leases at AmberGlen were brokered by Bradford Fletcher, managing director of Grubb & Ellis’ Portland office and Intel’s exclusive leasing agent here.