US Chip Maker Intel Says Revenue Rose As It Cut Ranks
The US chip maker also said it "will no longer move forward" with projects in Germany and Poland as part of a push to save billions of dollars.
The struggling chip maker's earnings report came as rivals specializing in graphics processing units (GPUs) for artificial intelligence thrive due to rapid adoption of the technology.
Intel is one of Silicon Valley's most iconic companies, but its fortunes have been dwarfed by Asian powerhouses TSMC and Samsung, which dominate the made-to-order semiconductor business.
The company was also caught by surprise with the emergence of Nvidia as the world's preeminent AI chip provider.
Intel's niche has been in chips used in traditional computing processes, steadily being eclipsed by the AI revolution.
Intel reported $12.9 billion in sales in the recently ended quarter, topping forecasts, but logged a $2.9 billion loss that included $1.9 billion in restructuring charges.
"Intel has completed the majority of the planned headcount actions it announced last quarter to reduce its core workforce by approximately 15 percent," the company said in an earnings release.
"These changes are designed to create a faster-moving, flatter and more agile organization."
Intel shares were down slightly in after-hours trades that followed the release of the earnings figures.
Intel chief executive Lip-Bu Tan took the helm in March, announcing layoffs as White House tariffs and export restrictions muddied the market.
Malaysia-born tech industry veteran Tan has said it "won't be easy" to overcome challenges faced by the company.
Meanwhile, South Korean chip giant SK hynix reported record quarterly profits Thursday thanks to soaring demand for artificial intelligence technology.
The world's second-largest memory chip maker dominates the market for high-bandwidth memory semiconductors and is a key supplier for US titan Nvidia.
Riding the AI wave, last week Taiwan chip giant TSMC announced a surge in net profit for the second quarter.
"Nvidia suppliers like SK hynix will continue to enjoy strong demand in the coming months and years for memory chips due to the high memory content needed to make AI chips functional," G. Dan Hutcheson of TechInsights told AFP.
Dutch tech giant ASML last week said it booked higher net profits in the second quarter of 2025 compared with the same period last year.
The firm, which makes cutting-edge machines for the manufacture of semiconductors, warned that the growth outlook for next year was somewhat less rosy than before.
"Looking at 2026, we see that our AI customers' fundamentals remain strong," said Chief Executive Officer Christophe Fouquet in a statement.
"At the same time, we continue to see increasing uncertainty driven by macro-economic and geopolitical developments," he cautioned.
Washington has sought to curb exports of state-of-the-art chips to China, concerned that they could be used to advance Beijing's military systems and otherwise undermine American dominance in AI.
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DW
2 days ago
- DW
Germany updates: Volkswagen profits down amid Trump tariffs – DW – 07/25/2025
Meanwhile, German automobile giant Volkswagen has seen profits tumble as a result of US tariffs. Meanwhile, the number of deportations from Germany is up slightly compared to the first half of last year. DW has chip manufacturer Intel has abandoned plans to build a factory in the eastern German city of Magdeburg as it battles with heavy losses and job cuts domestically and fresh competition abroad. After announcing a $2.9-billion (€2.5-billion) second-quarter loss on Thursday, the California-based tech giant confirmed that it would "not be pursuing planned projects in Germany and Poland." The initial plans had involved the construction of a €30-billion chip production plant in Magdeburg, to be subsidized by the German government to the tune of around €10 billion. However, the plans were put on ice in November, with no specific reason given. "When you look at the last few months, then Intel's decision isn't that surprising," Sven Schulze (CDU), Economy Minister for the eastern German state of Saxony-Anhalt, told local public broadcaster . Citing Intel's internal problems and US President Donald Trump's "America first" policy, he said: "Both were bad signs for Intel investment in Europe." Germany's biggest trade union, IG Metall, said the U-turn was "without doubt a set-back" for the region and called for "new perspectives." Regional union boss Thorsten Gröger said that Saxony-Anhalt had developed all the infrastructural prerequisites for industrial investments in recent years, "from available spaces to transport connections to qualified personnel." He warned Berlin not to abandon the region's industrial ambitions and ensure that "the political will remains to maintain manufacturing in the country and actively support new investments." 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"A great deal of effort is achieving very little – all while undermining EU law," claimed Gerald Knaus, chairman of the European Stability Initiative, in the Friday edition of German finance newspaper . Knaus also defended German migration policy under former Chancellor Angela Merkel (CDU) — which has come under severe attack from Merz and his current government. "Germany had irregular migration under control," he claimed. "The core elements of Merkel's policies after 2016 were correct, as shown by the sharp decrease in refugee numbers following the [2016] refugee deal between the European Union and Turkey. Indeed, Knaus warned that the current government's constant criticism of Merkel, who also headed up conservative-led coalitions, only serves to help the far-right. "The CDU is running from its own history and talking down its own success," he opined. "[Now], every time any crime is committed by a migrant, [the far-right AfD] can claim: the CDU is to blame." The number of deportations from Germany rose to more than 11,800 in the first half of this year, according to data released by the Interior Ministry. The figure, provided in response to a parliamentary question from a lawmaker from the far-right Alternative for Germany (AfD) party, represents an increase of over 2,000 on the same period in 2024, during which around 9,500 deportations were carried out. The new conservative-led German government under Chancellor Friedrich Merz (CDU) has promised a tougher approach to illegal migration, tightening border checks, clamping down on "secondary migration" within the European Union and resuming deportation flights to countries such as Afghanistan and Iraq. Earlier this month, Interior Minister Alexander Dobrindt (CSU) joined his counterparts from Austria, Denmark, France, the Czech Republic and Poland in calling for a tougher European migration and asylum policy. "Effective returns are essential for maintaining trust in a balanced European migration policy," the ministers said in a joint statement. Welcome to DW's coverage of developments in Germany on Friday, July 25. As the weekend approaches, we'll keep you up to date on stories including: And remember: you can recap on yesterday's Germany news here.
Int'l Business Times
3 days ago
- Int'l Business Times
Asian Markets Turn Lower As Trade War Rally Fades
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Int'l Business Times
3 days ago
- Int'l Business Times
US Chip Maker Intel Says Revenue Rose As It Cut Ranks
Intel on Thursday posted quarterly revenue that topped market expectations, saying it has cut about 15 percent of its workforce to be "more agile." The US chip maker also said it "will no longer move forward" with projects in Germany and Poland as part of a push to save billions of dollars. The struggling chip maker's earnings report came as rivals specializing in graphics processing units (GPUs) for artificial intelligence thrive due to rapid adoption of the technology. Intel is one of Silicon Valley's most iconic companies, but its fortunes have been dwarfed by Asian powerhouses TSMC and Samsung, which dominate the made-to-order semiconductor business. The company was also caught by surprise with the emergence of Nvidia as the world's preeminent AI chip provider. Intel's niche has been in chips used in traditional computing processes, steadily being eclipsed by the AI revolution. Intel reported $12.9 billion in sales in the recently ended quarter, topping forecasts, but logged a $2.9 billion loss that included $1.9 billion in restructuring charges. "Intel has completed the majority of the planned headcount actions it announced last quarter to reduce its core workforce by approximately 15 percent," the company said in an earnings release. "These changes are designed to create a faster-moving, flatter and more agile organization." Intel shares were down slightly in after-hours trades that followed the release of the earnings figures. Intel chief executive Lip-Bu Tan took the helm in March, announcing layoffs as White House tariffs and export restrictions muddied the market. Malaysia-born tech industry veteran Tan has said it "won't be easy" to overcome challenges faced by the company. Meanwhile, South Korean chip giant SK hynix reported record quarterly profits Thursday thanks to soaring demand for artificial intelligence technology. The world's second-largest memory chip maker dominates the market for high-bandwidth memory semiconductors and is a key supplier for US titan Nvidia. Riding the AI wave, last week Taiwan chip giant TSMC announced a surge in net profit for the second quarter. "Nvidia suppliers like SK hynix will continue to enjoy strong demand in the coming months and years for memory chips due to the high memory content needed to make AI chips functional," G. Dan Hutcheson of TechInsights told AFP. Dutch tech giant ASML last week said it booked higher net profits in the second quarter of 2025 compared with the same period last year. The firm, which makes cutting-edge machines for the manufacture of semiconductors, warned that the growth outlook for next year was somewhat less rosy than before. "Looking at 2026, we see that our AI customers' fundamentals remain strong," said Chief Executive Officer Christophe Fouquet in a statement. "At the same time, we continue to see increasing uncertainty driven by macro-economic and geopolitical developments," he cautioned. Washington has sought to curb exports of state-of-the-art chips to China, concerned that they could be used to advance Beijing's military systems and otherwise undermine American dominance in AI.
