Intel earlier released its second-quarter financial report for fiscal year 2025, with revenue of US$129 billion, the same as the same period last year, but due to the impact of restructuring and asset impairment, the net loss widened to US$29 billion, including US$19 billion in restructuring expenses, US$8 million in equipment impairment and US$2 million in one-time costs.
Intel CEO Lip-Wu Chen also confirmed that Intel will implement another 15% layoff by the end of this year, which will limit the number of global employees to 7, thereby optimizing overall production capacity. At the same time, Lip-Wu Chen also said that the company is currently accelerating organizational simplification and improving operational efficiency, and will focus more on core products and AI application layout, while improving the financial discipline of the foundry business. Although the transformation takes time, Intel is confident in its future competitiveness and profitability.
Chief Financial Officer David Zinsner pointed out that the reduction in operating expenses and asset disposals have begun to show results. Intel aims to reduce non-GAAP (U.S. Generally Accepted Accounting Principles) operating expenses to US$2025 billion in fiscal 170 and further to US$2026 billion in fiscal 160.
According to the financial report, Intel's operating cash flow in the second quarter of fiscal year 2025 was US$21 billion, and the client computing (CCG) business revenue reached US$79 billion, a decrease of 3% from the same period last year, and the data center and AI (DCAI) business revenue was US$39 billion, an increase of 4% over the same period last year. As for Intel Foundry's wafer foundry business revenue, it reached US$44 billion, an increase of 3% over the same period last year. Other business units grew by 20%, with revenue reaching US$11 billion.
At the same time, Intel also announced the suspension of its expansion plans in Germany and Poland, and the integration of Costa Rica assembly and testing operations into Vietnam and Malaysia. In addition, the construction progress of the new plant in Ohio will also be slowed down to adjust capital expenditures in line with market demand.
As for products, Intel has launched three sixth-generation Xeon scalable processors for server needs, supporting AI workloads and claiming that they can correspond to the NVIDIA DGX B300 acceleration platform.The next generation of laptop processors codenamed "Panther Lake"It is expected to start shipping at the end of the year. As for Intel's 18A process technology, it has already begun production in Arizona.
In addition, Intel also stated that it sold 5750 million shares of Mobileye to revitalize assets and strengthen finances, obtaining US$9.2 million in funds, while emphasizing that it is still a major shareholder of Mobileye.
Intel預測2025財年第三季營收將介於126億至136億美元之間，毛利率預估為34.1% (GAAP)與36.0% (非GAAP)，另外也預估每股虧損為0.24美元。
Three major strategies to create a "new Intel"
In a letter to internal employees, Lip-Wu Chen explained that he would streamline the organization and reshape the organizational culture to create a "new Intel."
Chen Liwu emphasized that these measures are aimed at creating a faster, more agile Intel with engineering innovation as its core, eliminating cumbersome bureaucratic procedures, reducing costs to release resources, and investing in growth momentum. At the same time, Intel also confirmed that it will fully implement the policy of returning to the office from September this year.
At the same time, Lip-Bu Tan also explained that the company will be restructured with three major strategic focuses:
• Building a Financially Disciplined Foundry Business:
In the past, too much capital was invested without fully understanding market demand, resulting in scattered factory layout and idle production capacity. In the future, capital expenditure will be strictly controlled, and the expansion plans in Germany and Poland will no longer be implemented. The assembly and testing operations in Costa Rica will be integrated to Vietnam and Malaysia. At the same time, the construction progress of the new factory in Ohio, USA will be delayed and adjusted according to actual customer needs.
In terms of process technology, Intel will fully promote the mass production of Intel 18A process and use this technology to support customers including the US government. The subsequent Intel 14A will be jointly designed and put into production based on specific customer needs, emphasizing that "every investment must have a reasonable return."
• Revitalize the x86 ecosystem and product competitiveness:
Intel will focus on recovering its market share in the notebook and server markets, making Panther Lake its main notebook product and continuing to optimize it."Nova Lake" high-end desktop platformIn the data center field, SMT (simultaneous multi-threading) technology is re-introduced to make up for the performance gap.Xeon processor codenamed "Granite Rapids"It is also progressing steadily.
To strengthen execution, Chen Lip-wu requires that all major chip designs be personally approved before being sent for production, to ensure a simple architecture, optimized cost structure, and streamlined product line, to avoid the situation in the past where problems were discovered only after products were put into production and put on the market.
• Restructure AI strategy and focus on differentiated areas:
Intel will readjust its AI development direction from the past silicon-based orientation that focused on training to a focus on "inference" and "agent AI". In the future, it will start from emerging application workloads, reverse-engineer the required software and hardware platforms, and continue to introduce talents and develop new technologies.
Lip-Bu Chen emphasized that Intel's future is in the hands of its employees, and the company must continue to move forward with discipline and efficiency. He is encouraged by the initial results of the second quarter and believes that through reform and focus, Intel will regain its leading position in the new era.
