“Going forward, we will grow our capacity based solely on the volume commitments and deploy CapEx in lockstep with the tangible milestones and not before.”

In context

“ir products at scale. We need to have process and packaging technology that is not only competitive but, more importantly, is designed to meet the needs of our customers. In addition, we also need to develop a rich and diverse ecosystem of IP and EDA partners who will enable our customers to seamlessly design chips using our process. And finally, perhaps most importantly, we need to build capacity smartly and carefully on a schedule that meets the needs of our customers and supports the economics of our business. This approach is fundamentally different than the path we have been on for the last 4 years. Unfortunately, the capacity investment we made over the last several years were well ahead of demand and were unwise and excessive. Our factory footprint has become needlessly fragmented. Going forward, we will grow our capacity based solely on the volume commitments and deploy CapEx in lockstep with the tangible milestones and not before. As part of this new financial discipline, we have decided not to continue with our manufacturing projects in Germany and Poland. We also plan to consolidate our assembly and test operation in Costa Rica into larger existing sites in Vietnam and Malaysia. And we will further slow the pace of construction in Ohio to ensure our spending is aligned with market demand. Importantly, based on the progress we have already made in Ohio, we have flexibility to accelerate work as needed to meet customer needs. Turning specifically to process technology development. On Intel 18A, we will continue to make steady progress on our yield and performance targets. Intel 18A is the foundation of at least next 3 generations of Intel client and server products, and we remain committed to ramping this technolog”