INTC · 10-K · 2025A · Full report
Manufacturing Capacity and Capital
INTEL CORP · 2026-01-23 · Importance 51 · Surprise 42
Intel streamlined its manufacturing footprint in 2025 to better align capacity with anticipated demand, consolidating Costa Rica assembly and test operations, slowing construction of a new Ohio fab and discontinuing planned expansions in Germany and Poland. The company signaled a material conditional strategy: if a significant external foundry customer for Intel 14A is not secured, it may pause or discontinue pursuit of Intel 14A and successor nodes and, over time, shift manufacturing for nodes beyond Intel 18A to third-party foundries, particularly TSMC. Intel also continues to invest in advanced packaging and chiplet integration while emphasizing the need to maximize utilization to amortize the capital intensity of leading-edge nodes. These capacity decisions reflect a rebalancing of capital deployment and operational footprint tied directly to foundry customer traction and overall product volumes.
Key facts
- As of Dec 27, 2025 Intel had commitments for capital expenditures of $9.1 billion for 2026 and $3.7 billion committed in the long term.
- As of December 27, 2025, Intel's construction in progress (capital investments) totaled $34.5 billion, down from $50.4 billion as of December 28, 2024.
- Intel Foundry incurred $950 million of asset impairments and accelerated depreciation charges in 2025 related to certain manufacturing assets determined to have no remaining operational use, compared to $3.3 billion in 2024 primarily related to Intel 7 manufacturing assets.
- In 2025 Intel ramped Intel 18A into high-volume production and is seeking to establish it as its first significant node for government and enterprise foundry customers.
- Intel stated construction in progress assets have not yet been placed into service and have not yet begun depreciating and that placing them into service will cause depreciation expense impacting future production costs.
- Intel stated short-term funding requirements include capital expenditures for worldwide manufacturing and assembly and test, including investments in process technology roadmap and investments in product roadmap and working capital requirements including cash outlays associated with 2025 Restructuring Plan and prepayments to secure supply.
- As of Dec 27, 2025 Intel had other purchase obligations and commitments in 2026 under binding commitments of $2.2 billion, with an additional $4.5 billion committed in the long term.
- Intel expects that a majority of its products would continue to be manufactured in its own facilities utilizing nodes up to Intel 18A-P through at least 2030 if it discontinues Intel 14A and successor nodes.
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| assets | negative | realized | -7.5% | As of December 27, 2025, Intel's construction in progress (capital investments) totaled $34.5 billion, down from $50.4 billion as of… |
| assets | positive | committed | +3.6% | As of Dec 27, 2025 Intel had commitments for capital expenditures of $9.1 billion for 2026 and $3.7 billion committed in the long term. |
| liability | negative | committed | -1.8% | As of Dec 27, 2025 Intel had other purchase obligations and commitments in 2026 under binding commitments of $2.2 billion, with an… |
| operating_income | negative | realized | -1.8% | Intel Foundry incurred $950 million of asset impairments and accelerated depreciation charges in 2025 related to certain manufacturing… |
| operating_income | negative | realized | -1.6% | In 2025 Intel incurred $878 million of higher inventory reserves primarily related to lower of cost or net realizable value charges for… |
| assets | positive | committed | +1.5% | As of Dec 27, 2025 Intel had commitments for capital expenditures of $9.1 billion for 2026 and $3.7 billion committed in the long term. |
| liability | negative | committed | -0.9% | As of Dec 27, 2025 Intel had other purchase obligations and commitments in 2026 under binding commitments of $2.2 billion, with an… |
| assets | negative | realized | -0.5% | Intel Foundry incurred $950 million of asset impairments and accelerated depreciation charges in 2025 related to certain manufacturing… |
| assets | negative | realized | -0.4% | In 2025 Intel incurred $878 million of higher inventory reserves primarily related to lower of cost or net realizable value charges for… |
| operating_income | negative | probable | — | Intel stated construction in progress assets have not yet been placed into service and have not yet begun depreciating and that placing… |
| cash | negative | committed | — | Intel stated short-term funding requirements include capital expenditures for worldwide manufacturing and assembly and test, including… |
| cash | negative | probable | — | Intel expects that a majority of its products would continue to be manufactured in its own facilities utilizing nodes up to Intel 18A-P… |