A few days ago, it was reported that Intel canceled the IDC21 project in Israel and no longer built a development center, but chose to convert it into a parking lot, which can save about $200 million. When Intel announced its financial report for the third quarter of 2022 last year, it announced a plan for cost reduction and efficiency improvement. From now until 2025, it can cut costs by up to $10 billion. Apparently, there are more than one or two projects that Intel intends to cancel, and there will be more as the recession crisis intensifies.
Intel announced in April last year that it would invest $3 billion to expand the D1X fab in Oregon, and engineers will use the new clean room space to develop next-generation silicon process technology. However, according to The Oregonian, Intel has chosen to shelve plans for a new R&D center in Hillsboro, Oregon. The massive lab, which covers an area of about 18,580 square meters, was supposed to cost $700 million to build, meaning Intel has scaled back projects in the area as part of its cost-saving measures.
Intel said in a statement: “We are looking to reduce costs and increase efficiencies through multiple initiatives. This includes exploring more cost-effective real estate options to continue our data center R&D work in Oregon that is already in progress.”
According to Intel, research and development work continues, but in a changed location and should continue at existing facilities elsewhere in Oregon. Intel is Oregon’s largest employer, with about 22,000 employees, and construction of the new R&D center was supposed to begin this year.It is rumored that Intel will need to cut expenditures by $3 billion in 2023, and two projects in Israel and Oregon will save about $900 million. That means Intel has to figure out how to continue reducing spending by more than $2 billion to meet its financial plan.