Intel Corp plans to cut up to 6,000 manufacturing jobs as the company struggles with souring personal computer demand that has left its factories operating at less than their full capacity.

Capacity is critical in the semiconductor business, because chip makers that don't keep their factories running at full throttle are spending lots of money on facilities that aren't paying for themselves. Underutilized factories are cutting into Intel's margins, and were one reason the Santa Clara, California-based company reported a 90 percent drop in fourth-quarter profit last week.

Intel said that it plans to close three so-called "assembly test" facilities in Malaysia and the Philippines and will halt production at plants in Hillsboro, Oregon, and Santa Clara, California, where older-style wafers were being produced.