Intel Streamlines Operations by Scaling Back Manufacturing Initiatives

Intel’s CEO, Lip-Bu Tan, is making strides in his initiative to eliminate inefficiencies within the company. This plan involves scaling back several manufacturing projects.

On Thursday, December 14, the leading semiconductor manufacturer announced in its second-quarter earnings report that it will delay or potentially cancel a number of production initiatives. Specifically, Intel stated it will no longer proceed with previously announced projects in Germany and Poland. These included an assembly and testing facility in Poland and a chip manufacturing plant in Germany. Both projects have been on hold since 2024.

The company also intends to consolidate its testing centers in Costa Rica and relocate them to its facilities in Vietnam and Malaysia.

«Unfortunately, our investments in manufacturing capabilities over the past few years have significantly outpaced demand and have proven to be imprudent and excessive,» Tan remarked during the second-quarter earnings report. «Our manufacturing base has become unnecessarily fragmented. Going forward, we will only expand our manufacturing capacity based on volume commitments and will implement phased capital expenditure financing contingent upon tangible results.»

Intel also indicated that it plans to further postpone the opening of its $28 billion chip factory in Ohio. Initially slated to begin operations in 2025, the factory’s opening had already been delayed earlier this year in February.

The second quarter marked the first full quarter under Tan’s leadership. He was appointed CEO of the semiconductor company on March 12 and took office the following week. Shortly thereafter, Tan announced his plan to eliminate inefficiencies within the company through the divestiture of non-core units and the optimization of operations.

«We have a significant amount of work ahead of us to create a clean and organized organization, which we have taken seriously, and this remains our primary focus in the third quarter,» Tan stated during the second-quarter earnings announcement. «Our goal is to reduce inefficiencies and overlapping functions while enhancing accountability at all levels of the company.»

The firm also provided an update on its workforce, which has gone through multiple rounds of layoffs. Intel has reduced its staff by approximately 15% and expects to end the year with 75,000 employees, as reported by the company. According to Tan, the recent layoffs have allowed Intel to cut management levels by 50%.

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Source for the news can be found [here](https://techcrunch.com/2025/07/24/intel-continues-to-pull-back-on-its-manufacturing-projects/).