APPLE INVESTS $500 MILLION TO SOURCE CRITICAL IPHONE MATERIAL FROM THE U.S.

Intel is implementing major cost-cutting measures, including reduced capital expenditure and workforce reductions, as the U.S. chip giant works to recover from years of lost ground to competitors like TSMC, AMD, and Nvidia.

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The moves are part of CEO Pat Gelsinger’s multiyear turnaround strategy, which aims to reposition Intel as a top-tier semiconductor leader across both design and manufacturing.

The company’s latest disclosures indicate tighter internal cost controls, delayed factory investments, and targeted layoffs across underperforming divisions. These adjustments come amid broader macroeconomic headwinds and sustained underperformance in Intel’s data center and client computing businesses—two areas once considered its strongest revenue pillars.

SPENDING PULLED BACK AS FABS FACE TIMING CHALLENGES

Intel has trimmed its 2025 capital expenditure guidance, citing the need for a more disciplined investment pace as it builds out its foundry capacity through the Intel Foundry Services (IFS) initiative. Flagship projects like the Ohio and Arizona fabs, which were expected to rival TSMC's advanced packaging capabilities, will now see staggered buildouts and revised commissioning timelines.

While Intel maintains its long-term commitment to leading-edge manufacturing, executives noted that near-term capacity needs do not justify aggressive infrastructure spending at current demand levels. Instead, the company will focus on completing key process transitions, including the rollout of Intel 3 and Intel 18A nodes, which are critical to winning foundry clients and regaining process parity.