Intel is scaling back its chip manufacturing ambitions as it faces mounting pressure to secure major external customers for its upcoming 14A process node. In a recent 10-Q filing cited by Reuters, the company warned that failure to win a significant foundry client could force it to halt development of 14A and subsequent advanced nodes altogether.

As OregonLive reported, the move would mark a dramatic retreat from Intel's goal of becoming a leading contract chipmaker. Without a strong pipeline of external demand, Intel acknowledged it may have to rely more heavily on third-party foundries—particularly TSMC—for future products beyond its 18A and 18A-P nodes.

Intel is betting on ASML's High-NA EUV lithography technology for its 14A process and has confirmed as the first customer of ASML's cutting-edge Twinscan EXE:5000/5200 systems. These tools, which cost around $380 million each, represent a major investment—and require confidence that both Intel's own chips and client products will adopt the node.

Cost Cuts and Canceled Plants

Intel's retrenchment is not limited to technology. The company is also scaling back its global manufacturing footprint, consolidating chip packaging operations from Costa Rica into larger sites in Malaysia and Vietnam. This shift marks a break from its long-standing strategy of geographically diversified operations for supply chain resilience.

In Europe, Intel has officially canceled its planned PLN 20 billion ($500 million) semiconductor integration and testing facility in Miękinia, near Wrocław, Poland. Announced during its Q2 2025 earnings call, the decision follows months of uncertainty surrounding what was once expected to be the country's largest greenfield investment.

Intel attributed the cancellation to a sharpened focus on AI priorities and financial discipline, which includes slowing or halting other global projects. The company also scrapped plans for a new German fab and has again delayed its long-stalled Ohio plant, which no longer has a confirmed timeline.

Poland's Semiconductor Ambitions Remain Alive

Despite Intel's withdrawal, experts say Poland's semiconductor prospects remain strong. Max Dropiński, former Intel investment manager, noted that the Miękinia site remains one of the best-prepared zones in Europe and could attract other global semiconductor giants like TSMC, Samsung, or Micron.

Poland offers competitive advantages in backend chip manufacturing, including skilled labor, low operational costs, robust logistics, and institutional support. It ranks high on Kearney's Back-End Semiconductor Manufacturing Attractiveness Index for Europe.

As Intel reassesses its role in advanced chip production, countries like Poland may still benefit—if not from Intel, then from others eager to expand in Europe's semiconductor ecosystem.