Intel is scaling down several of its international manufacturing initiatives as part of a broader effort to streamline operations under new leadership.
During its second-quarter earnings announcement, the company revealed it will no longer proceed with a number of previously announced manufacturing projects. This includes halting plans for a semiconductor fabrication facility in Germany and a chip assembly and testing site in Poland. Both initiatives, initially unveiled in 2024, had already been placed on hold and are now officially cancelled.
Additionally, Intel is consolidating its testing operations by reducing its presence in Costa Rica and concentrating more of its manufacturing efforts in Vietnam and Malaysia. These moves are part of a shift toward a leaner, more demand-driven production strategy.
CEO Lip-Bu Tan, who stepped into the role in March 2025, emphasized the need for smarter capital investment. “In recent years, our infrastructure growth outpaced actual demand, resulting in an inefficient and overly complex factory network,” Tan said during the earnings call. “We’re now aligning our future investments directly with customer commitments and measurable progress, rather than speculative expansion.”
One of the most notable delays involves Intel’s planned $28 billion chip factory in Ohio. Originally set to open in 2025, the project had already experienced delays earlier this year. Now, its timeline has been pushed further out, with no revised completion date confirmed.
Tan, in his first full quarter as CEO, is focused on eliminating excess layers within Intel’s corporate structure and narrowing the company’s focus. His strategy includes selling off non-essential business segments and boosting operational efficiency across the board.
“We’re committed to building a streamlined, accountable organization,” he said. “This work is underway and will continue to be a key priority throughout the third quarter.”
The company also shared updates regarding its workforce reductions. Intel has undergone multiple rounds of layoffs, decreasing its global headcount by approximately 15%, with plans to close out the year with around 75,000 employees. The restructuring has reportedly reduced Intel’s management layers by half.
In a June internal memo, Intel confirmed plans to cut 15–20% of jobs in its Intel Foundry division, which manufactures chips for external partners. At the end of 2024, Intel employed 108,900 workers — down significantly from 124,800 at the close of 2023.
