Star Plan CryptocurrencyIntel suffers huge loss of 21 billion, initiates large-scale layoffs

Star Plan Cryptocurrency Intel's huge loss of 21 billion starts large-scale layoffs: the chip giant's transformation pains

1. Star Plan Cryptocurrency core financial data

2025 Q2 financial report:

Revenue: 12.9 billion Star Plan Cryptocurrency (year-on-year +0.2%, slightly exceeding expectations)

Net loss: 2.92 billion Star Plan Cryptocurrency (about RMB 21 billion), an increase of 81% year-on-year

Gross profit margin: 29.7% (much lower than 38.7% in the same period last year)

Chip foundry business loss: 3.17 billion Star Plan Cryptocurrency (revenue 4.4 billion, but high costs) 125

2. Layoff plan

2025 goal: Star Plan The total number of Cryptocurrency employees has been reduced from 108,900 to 75,000 (about 34,000 layoffs)

Layoffs:

24,000 layoffs since 2025 (20% of factory employees were laid off in June, and another 5,000 layoffs were laid off in July)

50% reduction in management and reduction of bureaucracy78

Global business contraction:

Cancellation of factory construction plans in Germany and Poland

Slowing down the progress of the Ohio factory

Integration of testing business in Vietnam and Malaysia59

3. Reasons for losses and strategic adjustments

Drag down chip foundry business:

Technology lags behind TSMC, 18A process mass production is advanced but customer attraction is insufficient

14A process requires "customer order confirmation" before advancement68

Overexpansion:

Former CEO Kissinger's 2nm investment was criticized by new CEO Lip-Wu Chen as "excessive and unwise"

Low factory utilization and excessive capital expenditure16

Short-term demand fluctuations:

PC manufacturers stocked up in advance due to tariff concerns, pushing up Q2 revenue but not sustainable411

4. Star Plan Cryptocurrency market reaction and future outlook

Stock price plummeted: fell more than 8% before the market, and the market value shrunk to about 99 billion Star Plan Cryptocurrency

Comparison of Star Plan Cryptocurrency competitors:

Intel rose 12.8% this year, far behind Nvidia (+30%) and AMD (+34%)36

New Star Plan Cryptocurrency strategy:

Focus on AI chip foundry, strive for orders from US companies to replace TSMC

Goal to reduce operating costs to 17 billion Star Plan Cryptocurrency in 202558

5. Star Plan Cryptocurrency industry impact and challenges

The dilemma of US semiconductor manufacturing: Whether Intel can become the "US version of TSMC" is in doubt

Lagging behind in the AI competition: Data centers still rely on CPUs, and the GPU market is monopolized by Nvidia

Long-term risks: If the 18A/14A process fails to break through, the foundry strategy may fail68

Conclusion: Intel is undergoing a "cut off arm to survive" transformation. Layoffs and business contraction are aimed at stopping bleeding, but whether it can revive its glory in the AI era still depends on technological breakthroughs and the progress of foundry business.