Intel is implementing significant changes to enhance efficiency under CEO Tan, which includes delaying and halting multiple manufacturing projects. The company has decided against proceeding with its assembly and testing facility in Poland and a chip factory in Germany. Additionally, Intel plans to consolidate its operations in Costa Rica, shifting them to Vietnam and Malaysia. The Ohio chip factory's opening has also been postponed further. Tan aims to streamline operations by selling off non-core units and focusing on reducing inefficiencies and redundancies.
Unfortunately, the capacity investment we make over the last several years were well ahead of demand and were unwise and excessive. Our factory footprint has become needlessly fragmented.
Going forward, we will grow our capacity based solely on the volume commitments and deploy capex lockstep with the tangible milestones, and not before.
We have much work to do in building a clean and streamlined organization, which we have started in earnest, and is remain an area of focus for me during Q3.
The second quarter was the first full quarter with Tan at the helm of Intel. He was named CEO of the semiconductor company on March 12.
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