Intel has announced a major restructuring of its global manufacturing footprint, marking the first significant operational shift under newly appointed CEO Lip-Bu Tan. In its second-quarter earnings report, the company confirmed it will not proceed with previously announced manufacturing projects in Germany and Poland, including a chip fabrication plant and an assembly and testing facility. Both initiatives had been suspended since 2024 and are now officially cancelled.
The company also revealed plans to consolidate testing operations in Costa Rica, redirecting focus to existing facilities in Vietnam and Malaysia. Additionally, Intel will further delay its $28 billion Ohio chip factory, originally scheduled to open in 2025 and postponed earlier this year.
Tan, who took the helm in March 2025, is implementing a broader cost-reduction strategy aimed at eliminating redundancies, streamlining operations, and aligning capital expenditure with firm demand. Intel’s workforce has already been reduced by approximately 15%, with plans to end 2025 at 75,000 employees, down from 108,900 at the end of 2024. The restructuring includes deep cuts within the Intel Foundry unit and a significant reduction in management layers.
The company’s AI and semiconductor roadmap will now prioritize efficiency, accountability, and sustainable growth, as Tan pushes forward with an aggressive operational overhaul.
