The financial difficulties faced by tech giant Intel seem likely to hit its operations in a number of regions, including Poland and Malaysia, with delays likely for chip-related operations in both countries.
Plans for new chip factories in both German and Poland are reportedly being put on hold for two years. The opening of a new chip packaging plant in Malaysia could also be delayed.
This follows recently revealed Q2 2024 losses of US$1.6 billion. Project delays are not the only cost-saving measure planned. Intel has also announced that it intends to lay off 15,000 staff across the company as part of a plan to save US$10 billion.
In addition, R&D, marketing spend and capex will all be cut, and non-variable cost of goods sold will be reduced. The Data Centre Dynamics website also notes that the company wants to eliminate complexity by putting an end to overlapping areas of responsibility and what it calls "non-essential work".
The Poland assembly and testing facility has been priced at US$5.1 billion. It was due to come online in 2027 and create 2,000 jobs.
Malaysia is described as an active design and manufacturing hub, but CEO Pat Gelsinger is quoted as saying: “We plan to complete the construction of our new advanced packaging factory in Malaysia but will align the startup with market conditions and increased utilisation of our existing capacity.”
