Intel Continues To Pull Back On Its Manufacturing Projects

Intel CEO Lip-Bau is making advancement connected his scheme for nan institution to shed its inefficiencies. And that includes spiking respective manufacturing projects.

The semiconductor elephantine reported Thursday successful its second-quarter net study that it will delay, and successful immoderate cases, not move guardant pinch aggregate manufacturing projects. Specifically, Intel said it was nary longer going guardant pinch its previously-announced projects successful Germany and Poland. Those projects included an assembly and testing installation successful Poland and a spot mill successful Germany. Both projects person been sitting successful limbo since being suspended successful 2024, shortly aft being announced.

The institution besides plans to consolidate its trial operations successful Costa Rica and ore these operations to its sites successful Vietnam and Malaysia.

“Unfortunately, nan capacity finance we make complete nan past respective years were good up of request and were unwise and excessive,” Tan said connected nan company’s second-quarter net call. “Our mill footprint has go needlessly fragmented. Going forward, we will turn our capacity based solely connected nan measurement commitments and deploy capex lockstep pinch nan tangible milestones, and not before.”

Intel besides said it was going to further hold its $28 cardinal Ohio spot factory. The mill was initially expected to unfastened successful 2025, and was already delayed erstwhile this twelvemonth successful February.

The 2nd 4th was nan first afloat 4th pinch Tan astatine nan helm of Intel. He was named CEO of nan semiconductor institution connected March 12 and started nan domiciled a week later. Shortly after, Tan said his scheme was to eliminate inefficiencies astatine nan institution by trading disconnected its non-core units and streamlining operations.

“We person overmuch activity to do successful building a cleanable and streamlined organization, which we person started successful earnest, and is stay an area of attraction for maine during Q3,” Tan said connected nan Q2 net call. “Our extremity is to trim inefficiencies and redundancies and summation accountability astatine each level of nan company.”

The institution besides gave an update connected its workforce, which has gone done respective rounds of layoffs. Intel reduced its workforce by astir 15% and plans to extremity nan twelvemonth pinch 75,000 employees, nan institution said. Intel was capable to destruct 50% of guidance layers done its caller layoffs, Tan said.

Intel announced successful June successful an soul memo that it was going to lay disconnected 15% to 20% of workers successful its Intel Foundry unit, which designs and manufactures chips for outer clients. The institution had 108,900 labor astatine nan extremity of 2024, according to nan company’s annual report revenge pinch nan Securities and Exchange Commission. That’s down from nan 124,800 group it employed astatine nan extremity of 2023.