Intel says it is further slowing construction of its two chip fabrication plants in New Albany.
Intel CEO Lip-Bu Tan made that announcement Thursday in a note to employees on the company's second-quarter financial report.
Tan's note did not specifically say how much work would be slowed and when the plants would be opening.
Intel had already delayed the opening of the New Albany plants by at least five years. Intel had originally planned to open the plants in Licking County, a $28 billion project, by this year.
They had recently been slated to begin production in 2030 and 2031.
Tan said that Intel will take a fundamentally different approach to building our foundry business and will be "judicious and disciplined as we allocate capital."
"Over the past several years, the company invested too much, too soon – without adequate demand," Tan said.
"We remain deeply committed to investing in the U.S., where we will apply the same level of financial discipline. To that end, we are further slowing construction in Ohio to ensure our spending is aligned with demand – while maintaining flexibility to accelerate based on new customer wins," Tan said.
Tan also says that Intel plans to lay off 15% of its worldwide workforce.
The company has decided not to move forward with previously planned projects in Germany and Poland, Tan said.
It also plans to consolidate assembly and test operations in Costa Rica to larger sites in Vietnam and Malaysia.
Intel reported its second-quarter revenue was $12.9 billion, flat year-over-year, and a net loss of $2.9 billion, much of that attributable to restructuring costs.
“We are laser-focused on strengthening our core product portfolio and our AI roadmap to better serve customers," Tan said. "We are also taking the actions needed to build a more financially disciplined foundry."
