The announcement from the company came a week after it reported a 90 percent fall in profits for the last three months of 2008. Intel´s profit for the quarter totaled US $234 million, down from $2.3billion a year earlier.
In addition to falling computer sales, the firm said it was being affected by the growth in popularity of super-small laptops, known as "netbooks", as they use lower profit margin smaller and slower chips.
Intel said the decision to close the five plants - including two sites in Malaysia - would not affect continuing investment in its more modern manufacturing facilities. "The market will welcome these actions - this is absolutely a good step," BBC quoted Doug Freedman, a computer analyst with Broadpoint Amtech as saying.
Taiwan Semiconductor Manufacturing, one of Intel´s smaller rivals, also announced on Thursday that it was being hit by the global fall in demand for computer products. It reported a 64 percent fall in quarterly profits.
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