Intel 2008 Annual Report Download - page 28

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Table of Contents
ITEM 1B. UNRESOLVED STAFF COMMENTS
Not applicable.
ITEM 2. PROPERTIES
As of December 27, 2008, our major facilities consisted of:
Our principal executive offices are located in the U.S. The majority of our wafer fabrication activities are also located in the
U.S. Outside the U.S., we have wafer fabrication at our facilities in Ireland and Israel. In addition, we are building a new wafer
fabrication facility in China. Our assembly and test facilities are located overseas, specifically in Malaysia, China, Costa Rica,
and the Philippines. We are building a new assembly and test facility in Vietnam that is expected to begin production in 2010.
In addition, we have sales and marketing offices worldwide. These facilities are generally located near major concentrations of
users.
We have placed for sale certain facilities (see “Note 15: Restructuring and Asset Impairment Charges”
in Part II, Item 8 of this
Form 10-K). Additionally, subsequent to the end of 2008, management approved plans to restructure some of our
manufacturing and assembly and test operations, and align our manufacturing and assembly and test capacity to current market
conditions. These actions, which are expected to take place beginning in 2009, include closing two assembly and test facilities
in Malaysia, one facility in the Philippines, and one facility in China; stopping production at a 200mm wafer fabrication
facility in Oregon; and ending production at our 200mm wafer fabrication facility in California. Except for these facilities, we
believe that our existing facilities are suitable and adequate. We recorded under-utilization charges in the fourth quarter of
2008 as a result of our decision to reduce our facility loadings at certain facilities, due to a significant decrease in demand. We
expect to continue to have under-utilization charges in 2009; however, we do plan to utilize the productive capacity of these
facilities in the future.
We do not identify or allocate assets by operating segment. For information on net property, plant and equipment by country,
see “Note 25: Operating Segment and Geographic Information” in Part II, Item 8 of this Form 10-K.
ITEM 3. LEGAL PROCEEDINGS
For a discussion of legal proceedings, see “Note 24: Contingencies” in Part II, Item 8 of this Form 10-K.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None.
23
(Square Feet in Millions)
United States
Other Countries
Total
Owned facilities
1
27.2
16.8
44.0
Leased facilities
2
1.7
2.8
4.5
Total facilities
28.9
19.6
48.5
1
Leases on portions of the land used for these facilities expire at varying dates through 2062.
2
Leases expire at varying dates through 2028 and generally include renewals at our option.