Intel’s Foundry Ambitions Crumble as Massive Layoffs Hit Oregon

Intel’s grand plans to reclaim dominance in semiconductor manufacturing are collapsing under the weight of internal misfires and strategic confusion. In a blow to both employee morale and investor confidence, the company has announced over 2,500 layoffs at its Oregon site – five times more than what was initially reported. This move comes amid broader restructuring efforts to salvage the company’s sputtering foundry division.

The Oregon facility, once a symbol of Intel’s future-facing ambitions, was expected to spearhead production of its advanced 18A and 14A process nodes. Instead, it now faces uncertainty as the layoffs threaten to destabilize ongoing operations. While Intel has claimed that production won’t be immediately impacted, many see this downsizing as a signal that the company is shifting focus and scaling back its expectations.

Despite being headquartered in the U.S. and having enjoyed decades of federal support – including generous allocations from the CHIPS Act – Intel is struggling to meet the nation’s demand for homegrown chip production. Its failure stands in stark contrast to TSMC, which continues to expand aggressively on U.S. soil, capitalizing on government incentives and industry trust.

New CEO Lip-Bu Tan, brought in to usher in a turnaround, now finds himself at the center of controversy. Critics accuse him of corporate bloodletting, favoring cost-cutting over innovation. Some even speculate that his aggressive moves could open the door for acquisitions or foreign influence, stoking fears of a potential buyout of Intel’s prized assets.

Meanwhile, speculation swirls in tech circles about whether Intel’s best days are behind it. Rumors of interest from companies like Broadcom, Qualcomm, and even AMD or TSMC have reignited talks of Intel being broken up or sold off in parts. While some see opportunity in acquisition, others lament what they perceive as the fall of an American tech titan due to short-sighted leadership and relentless mismanagement.

For now, Intel remains in a precarious position: too big to fail, yet seemingly unable to regain its footing. Whether Tan can stabilize the company or ends up presiding over its dismemberment remains to be seen. But for thousands of laid-off workers and a shrinking foundry division, the damage may already be done.