Intel has officially abandoned its plans to build semiconductor manufacturing and assembly plants in Germany and Poland. The decision was confirmed as part of a wider restructuring strategy unveiled by the company amid ongoing financial pressure and a shift in corporate priorities. The cancelled projects include a long-delayed chip fabrication facility in Magdeburg, Germany, and an assembly and test plant in Poland. Both were previously touted as major components of Intel’s ambitions to expand its global manufacturing footprint and support Europe’s drive for semiconductor self-sufficiency. Intel had initially committed tens of billions of euros to the European ventures, with strong backing from local governments and the European Union. According to Intel’s new CEO, Lip-Bu Tan, the company is no longer pursuing large-scale manufacturing investments that are not directly supported by customer demand. He stated that Intel would only proceed with new facilities if they make clear economic sense and are aligned with real-time market needs. This marks a significant shift away from the expansive investment strategy previously championed by the company’s leadership. The cancellation comes as Intel reported a net loss of $2.9 billion for the second quarter of 2025, with its foundry business posting an operating loss of $3.17 billion. In response to the losses, the company is undergoing deep cost-cutting measures, including a planned reduction of its global workforce by roughly 24,000 jobs. Intel is also consolidating its existing operations in other regions, such as shifting assembly functions from Costa Rica to larger facilities in Asia. With the European factory plans now shelved, Intel’s focus appears to be narrowing to existing projects in the United States and Asia, where customer pipelines are more established. The decision casts doubt on the EU’s semiconductor ambitions and leaves thousands of prospective jobs in Germany and Poland unfulfilled.