Intel is canceling its proposed factory projects in Europe as it works to streamline its operations and reduce expenses. CEO Lip-Bu Tan shared the changes Thursday during the company’s Q2 financial results.
The semiconductor giant will no longer build a chip factory in Germany or a testing center in Poland. Testing functions in Costa Rica are also being transferred to sites in Malaysia and Vietnam for efficiency.
Tan blamed aggressive past investments that were not supported by demand. He said Intel’s new strategy focuses on “volume-based growth,” ensuring manufacturing capacity expands only when justified by confirmed orders.
Intel’s headcount is also being reduced sharply, with the company aiming to end 2025 with 75,000 employees. It had nearly 109,000 at the end of 2024, and recent cuts have targeted the Intel Foundry business in particular.
