Intel continues to pull back on its manufacturing projects

Intel CEO LIP-BU TAN is making progress on his plan for the company to throw off his inefficiency. And that includes nailing different production projects.

The semiconductor giant reported on Thursday in his winning report in the second quarter that it will delay, and in some cases will not continue with multiple production projects. In particular, Intel said that it was no longer possible with his previously announced projects in Germany and Poland. These projects include an assembly and test facility in Poland and a chip factory in Germany. Both projects have been in the dark since he was suspended in 2024, shortly after he was announced.

The company also plans to consolidate test activities in Costa Rica and to concentrate these activities at its locations in Vietnam and Malaysia.

“Unfortunately, the capacity investment that we have been doing in recent years was far ahead and they were unwise and exaggerated,” Tan said in the profit call of the company in the second quarter. “Our factory footprint has become unnecessarily fragmented. In the future we will only grow our capacity based on the volume obligations and implementation Capex Lockstep With the tangible milestones, and not before. ‘

Intel also said that it would further slow down his $ 28 billion Ohio Chip Factory. The factory was initially considered to open in 2025 and was postponed this year in February.

The second quarter was the first full quarter with Tan at the helm of Intel. He was appointed CEO of the Semiconductor Company on 12 March and started the role a week later. Shortly thereafter, Tan said that his plan was to eliminate inefficiencies at the company by selling its non -core units and streamlining activities.

“We have a lot of work to do when building a clean and streamlined organization, which we started seriously, and it remains a area of attention for me during the second quarter,” Tan said during the income call of Q2. “Our goal is to reduce inefficiencies and surpluses and to increase accountability at every level of the company.”

The company also gave an update on its workforce, which has completed several rounds of dismissals. Intel has reduced its workforce by around 15% and intends to end the year with 75,000 employees, the company said. Intel was able to eliminate 50% of the management layers by his recent fired, Tan said.

Intel announced in June in an internal memo that it would dismiss 15% to 20% of employees in its Intel Foundry unit, which designs and produces chips for external customers. According to the company, the company had 108,900 employees at the end of 2024 Annual report submitted to the Securities and Exchange Commission. That is lower than the 124,800 people who worked at the end of 2023.