Gelsinger laid out the plan to reduce costs by more than $10 billion next year as the chip maker reported second-quarter sales of $12.8 billion, down 1% and below analysts’ forecasts in a FactSet survey. Reaching that cost-reduction goal will require cutting jobs and lowering capital expenditures, among other moves, the company said.

The company’s stock fell 20% in after-hours trading.

Intel has struggled to gain a foothold in the market for artificial-intelligence chips that have driven the sales and valuations of Nvidia and some other rival chip makers. The heavy spending on those AI-focused chips to build out big data centers also has cut into demand for the non-AI processors for data centers that have long been central to Intel’s business.

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“Clearly market conditions, some were good and some not so good, and you have to adjust the financial envelope appropriately,” Gelsinger said in an interview. “The AI surge was much more acute than I expected, and you have to adjust to those things.”

Intel will lay off about 15,000 people, most of them by the end of this year, Gelsinger said in the interview. The company reported about 116,500 employees in its core business at the end of June.

Intel reported a loss of $1.6 billion for the second quarter, compared with a $1.5 billion profit a year earlier. It said it expected sales of roughly $13 billion in the third quarter, below analyst forecasts.

The pause in the company’s dividend follows a 66% reduction of the payouts last February.

(http://www.autoadmit.com/thread.php?thread_id=5568385&forum_id=2...id#47918942)

https://restofworld.org/2024/tsmc-arizona-expansion/

One former American engineer said some local co-workers referred to him as a “white breeding pig,” implying he was only in Taiwan to sleep with local women. At a meeting, a manager said Americans were less desirable than Taiwanese and Indian workers, according to people who saw leaked notes, which circulated among trainees.

A detailed photograph of a colorful semiconductor wafer.

A semiconductor wafer displayed at the TSMC museum in Taiwan in 2022. I-Hwa Cheng/Bloomberg/Getty Images

“They really are trying to push this narrative that Americans are slower because of lower technical ability, but I really don’t believe that’s the truth,” an American engineer who recently left TSMC told Rest of World. “The Taiwanese create this false sense of urgency with every single task, and they really push ‘you need to finish everything immediately.’ But it’s just not realistic for people that want to have some normal work-life balance.”

Several former American employees said they were not against working longer hours, but only if the tasks were meaningful. “I’d ask my manager ‘What’s your top priority,’ he’d always say ‘Everything is a priority,’” said another ex-TSMC engineer. “So, so, so, many times I would work overtime getting stuff done only to find out it wasn’t needed.”

(http://www.autoadmit.com/thread.php?thread_id=5568385&forum_id=2...id#47921077)

Well, not ONLY.

(http://www.autoadmit.com/thread.php?thread_id=5568385&forum_id=2...id#47921089)

(http://www.autoadmit.com/thread.php?thread_id=5568385&forum_id=2...id#47919158)

Intel is failing because AMD kicked their shit in in the short/medium term, and in the long term x86 is dying and Intel has no escape. The world is moving on the ARM whether they like it or not, and Intel's R&D got complacent

(http://www.autoadmit.com/thread.php?thread_id=5568385&forum_id=2...id#47920078)

birdshits never owned anything anyway, their jew masters did

(http://www.autoadmit.com/thread.php?thread_id=5568385&forum_id=2...id#47921309)

But also, it's not just Taiwan and India who are producing talent. The one chip designer I know personally is from Norway. Intel has recruiting offices in over 30 countries because these people sometimes come out of places like Brazil. You can't predict it.

(http://www.autoadmit.com/thread.php?thread_id=5568385&forum_id=2...id#47921311)

Intel and Biden Admin Announce up to $8.5 Billion in Direct Funding Under the CHIPS Act

(http://www.autoadmit.com/thread.php?thread_id=5568385&forum_id=2...id#47921390)