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Intel cancels construction of its $700 million megalab

Intel cancels construction of its 700 million megalab

Intel is picking up cable, of that there is no doubt. And seen what has been seen, it is the first to do so, although TSMC is also looking for it by delaying the EU (the US is no longer safe). What was to be the world’s most powerful laboratory for semiconductor desEsports Extrasand research has become a worthless piece of paper, as the Intel has backed off with his mega labbut why is it doing this now when it was about to be built?

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Intel is in financial trouble, like the rest of the industry. What the sector is trying to do is cut total spending as much as possible and for this the rounds of layoffs are the order of the day, seeking not to add wage bill and lower it throughout this year, but it is not the only thing where the scissors are inserted .

Intel’s Hillsboro lab is canceled

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What was going to be a world-first super project will be a dream that will have to be postponed, at best, because Intel is now looking for “cheaper options.” Penelope Bruce, a spokeswoman for Intel, explains it further:

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“We seek to reduce costs and increase efficiency through multiple initiatives. This includes exploring more cost-effective real estate options to continue our data center research and development work in Oregon that is already in progress.”

And it is that next to the mega laboratory that has now been canceled was a huge complex for the data center, which will no longer go there, but will continue at some point in Oregon. The reasons why all this is happening are economic and not logistical, since Intel has to cut expenses for an impressive amount of nothing less than 3 billionAlso, until the end of the year.

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Sales plummet and you have to tighten your pocket

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The latest data that the company offered to investors showed that sales were 16% below last year’s targets and… Let’s wait for this Thursday, Friday here, when we know what the fourth quarter of 2022 is, because everything looks to It’s going to be much more catastrophic.

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The main problem is the sales forecasts, since it is not that they are bad, it is that they can be historical in the negative if they are fulfilled, therefore, 2023 is only going to be a bump in the road, 2024 and 2025 seem like they could be even tougher, because it will take years to get back on the path of growth where it left off. Because of this, it is said that Intel’s spending forecasts will be minimal and that it will have to cut billions more in the future.

For now, to this mega-lab of Intel in Oregon for 700 million is added that of Israel for 200 million and the possible cancellation of the agreement with the EU and Germany for the super FAB of chips, which is being renegotiated for all that has been said.

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Likewise, the company has already slipped that the investigation cannot be stopped and must continue, but not in the mega laboratory described:

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“Intel remains dedicated to driving innovation across multiple lines of business in Oregon, including manufacturing, data center, software and more.”

In other words, the work is necessary to continue advancing and therefore it will have to be carried out in other company infrastructures and with other work groups. The funny thing about all this is that only the blue team is going public with their efforts to cut spending.

Its competitors, removing the cut in the production of semiconductors, they have not slipped even any movementNot even for investors. Is Intel being too conservative and protectionist? Or is it the only one that is really seeing the dramatic situation that is being experienced in the sector? Time will pass sentence for or against.

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