Intel continues to reduce capital expenditures, Oregon R & D center project on hold

Recently, when Intel announced its financial report for the third quarter of 2022, it also announced a plan to reduce capital expenditures and improve efficiency, that is, to reduce capital expenditures by up to US$10 billion from now until 2025.

According to media reports, Intel has canceled the IDC21 plan in Israel, and will no longer build an R&D center, but choose to convert it into a parking lot to save about 200 million US dollars. Recently, Intel also decided to shelve plans for a new research and development center in Hillsboro, Oregon. Obviously, Intel's capital expenditure reduction plan will also involve a wider range.

In response, Intel responded that research and development work will continue, but the location has been changed, and it should continue at existing facilities in other locations in Oregon. Currently, Intel has approximately 22,000 employees in Oregon.

The media pointed out that Intel needs to cut capital expenditures by US$3 billion in 2023, of which the two projects in Israel and Oregon have saved a total of about US$900 million, which means that Intel must also try to reduce capital expenditures by more than US$2 billion. Capital expenditures to meet related financial curtailment plans.

Since last year, Intel executives have carried out layoffs and expenditure reduction measures. The wave of layoffs spread to California in December at the end of the year. This year, the first shot of layoffs in the New Year was fired in California. According to Marketwatch, Intel will eliminate hundreds of jobs in Silicon Valley.

A few days ago, Intel CEO Kissinger said that in the case of rapid changes in global semiconductor demand, operating Intel feels like stepping on the brakes and gas pedals of a car at the same time.