Intel cancels European chip factories, delays Ohio plant

Business Jul 25, 2025

Intel just called off plans to build a chip factory in Germany and an assembly plant in Poland. These projects, announced last year, never got started.
The move is part of CEO Lip-Bau Tan's push to make Intel run smoother and cut down on extra spending.

Intel's cost-cutting measures

Alongside canceling those factories, Intel is shifting its testing work from Costa Rica to Vietnam and Malaysia to better match what the market actually needs.
The much-hyped $28 billion Ohio chip plant is also delayed.
On top of that, Intel will trim its workforce by 15%—including big cuts in its Foundry division—and has halved its management layers for more accountability.
All these changes were confirmed in their July 24 earnings report as Lip-Bau Tan tries to get Intel back on track.