Intel is scaling back its manufacturing ambitions as part of CEO Lip-Bu Tan’s broader effort to streamline operations. In its second-quarter earnings report released Thursday, the company announced it will either delay or cancel several previously announced manufacturing projects.
Among the scrapped plans are a chip fabrication facility in Germany and an assembly and testing site in Poland. Intel also intends to consolidate its testing operations in Costa Rica, shifting those functions to existing sites in Vietnam and Malaysia.
Tan acknowledged that prior investment decisions led to a “needlessly fragmented” factory footprint. “The capacity investments we made were ahead of demand and excessive,” he said on the earnings call. Moving forward, Intel will align capital expenditures with confirmed demand milestones.
The company also confirmed a workforce reduction, saying it plans to end 2025 with about 75,000 employees — a 15% drop. Intel noted that its Foundry division had already been hit with layoffs impacting 15% to 20% of staff.
