When Pat Gelsinger rejoined Intel in 2021 and proclaimed the IDM 2.0 model, he mentioned that the company would incur losses in the short term but prosper in the long term. However, because of huge investments in its U.S. production capacity and ramping up products made on the latest nodes, the company's profit margins are thin—apparently too thin, as Politico reports Intel is halting some of its European projects in favor of others.
Intel has paused several significant investment projects in Europe due to 'financial losses,' Politico reports. This changed policy affects planned projects in France and Italy, redirecting Intel's focus to its efforts in Ireland, where it has a leading edge fab; Germany, where it is about to start constructing one of the most advanced fabs in the world; and Poland, where Intel is set to build an advanced packaging facility. However, Intel's plans in other European countries are no less ambitious.
