Intel Ceo Lip-Bu Tan’s CEO makes progress in his plan for the company to eliminate its ineffectiveness. And this includes the launch of many production projects.
The Semiconductor giant reported on Thursday in the second quarter profits report that it will be delayed and in some cases did not proceed with multiple production projects. Specifically, Intel said it is no longer proceeding with the programs previously announced in Germany and Poland. These projects included an installation of assembly and testing in Poland and a chip factory in Germany. Both projects have sat in the void since they are suspended in 2024 shortly after the announcement.
The company also plans to consolidate its test activities in Costa Rica and gather these businesses in its Vietnam and Malaysia sites.
“Unfortunately, the skill investments we have been making in recent years have been far ahead of demand and they were bad and excessive,” Tan said in the call of the company’s second quarter. “Our factory footprint has become unnecessarily fragmented. Going forward, we will increase our ability based solely on volume commitments and develop CAPEX LOCKSTEP with tangible landmarks and not before. ”
Intel also said it would further delay the $ 28 billion Ohio Chip plant. The plant had to open in 2025 and had already been delayed once in February.
The second trimester was the first full quarter with TAN at the wheel of Intel. He was named Managing Director of Semiconductor on March 12 and began the role a week later. Shortly afterwards, Tan said his plan was to eliminate the company’s deficiencies by selling from non -key units and rational companies.
“We have a lot of work to do to build a clean and rationalized organization, which we started seriously, and remain a focus area for me during the Q3,” Tan said in the Q2 profits call. “Our goal is to reduce deficiencies and redundancies and increase responsibility at every level of the company.”
TechCrunch event
Francisco
|
27-29 October 2025
The company also provided information about its workforce, which has gone through several rounds of layoffs. Intel reduced its workforce by about 15% and plans to finish the year with 75,000 employees, the company said. Intel was able to eliminate 50% of the management layers through its recent redundancies, Tan said.
Intel announced in June in an internal note that it was about to dismiss 15% to 20% of the Intel Foundry workers, which designs and manufactures chips for outdoor customers. The company had 108,900 employees at the end of 2024, according to the company annual report filed with the Securities and Exchange Commission. This is below 124,800 people employed in late 2023.
