Intel’s cost-cutting has led the company to cancel plans to build a $700 million data-center research lab in Hillsboro.
Intel (Nasdaq: INTC) embarked on an ambitious manufacturing-based investment strategy and is seeking federal and state aid to make it happen. But a chip market downturn and declining revenue also have the company trying to wring $3 billion from its 2023 spending, and more in the years beyond.
The 200,000-square-foot lab, intended for Intel’s Jones Farm campus, was announced last May with opening targeted for this year. Its cancellation, first reported by the Oregonian, comes as reports of Intel layoffs, also part of the cost-cutting, continue to trickle out.
The company suggested the research into addressing heating, cooling and water use by data centers will take place in other Oregon facilities.
“As we accelerate our strategy and respond to the current demand environment, we are looking to reduce costs and increase efficiencies through multiple initiatives,” an Intel spokesperson said in an emailed statement. “This includes exploring more cost-effective real estate options to continue our data center R&D work in Oregon that is already in progress.”
The statement from the company added that Intel remained “dedicated to fostering innovation across multiple business lines in Oregon, including manufacturing, data center, software, and others.” But the company did not directly comment on the state of other expansion possibilities in Oregon, which serves as Intel’s manufacturing research and development hub.
Intel and Oregon are vying for a piece of federal funding to create an advanced lithography center to research new technology that is foundational for making chips smaller.
Meanwhile, the status of Intel projects in Europe’s has been in the news this week. On Tuesday, the company reiterated that it was committed to building a chip plant, or fab, in Germany, and on Friday it did the same regarding a fab planned for Italy.
