Local executives of Intel Corp. confirmed they are shutting down their Cavite plant and will move the computer-manufacturing operations to Laguna.

“Talks are ongoing. We’ll be announcing details by January,” said external communications manager Ma. Teresa Pacis on Monday.

The decision, she said, was reached sometime in the middle of the year when the US economy showed clear signs it is tanking, but she declined to reveal additional details.

A source in the company said lease agreements are being negotiated and the transfer would begin next month. The move contradicts Intel’s official statement in April that “it has made no decisions on this matter and is currently exploring multiple options....In an effort to keep employees informed. Intel has updated its employees that significant investments would be required to ensure the long-term viability of its factory building in Cavite.”

ITPI, Intel’s local subsidiary, established its manufacturing operations at the Gateway Business Park, Javalera, General Trias, Cavite, in 1996 with 3,000 employees.

The company’s departure would mean diminished economic activity in Cavite by more than 20 percent of the province’s total exports and nearly 40 percent of real domestic production. General Trias would also lose its largest employer. The company also generates 36,000 jobs indirectly, in allied services and industries.

The company source said one of the options eyed for the transfer is the plant formerly operated by Philips Semiconductors in Cabuyao, Laguna.

Based on a commissioned study four years ago, Intel’s total electronic product output was determined as equivalent to 0.3 percent of the country’s gross domestic product. Intel has said, “To date, total investments in the Philippines is $1.51 billion.”