Intel Corp., a major player in Arizona’s semiconductor industry, recently announced plans to cut 15% of its global workforce, roughly 15,000 jobs. This decision comes as the company grapples with financial challenges, including a $1.6 billion loss in the second quarter of 2024. The cuts are part of a broader restructuring aimed at saving $10 billion by 2025.
What does this mean for Arizona? In 2021, Intel announced a $20 billion investment to expand its Chandler operations, marking the largest private investment in state history at the time. The expansion promised 3,000 new jobs, plus thousands of additional roles for suppliers and support services. Today, Intel employs more than 12,000 people at its Chandler facilities, and, while the impact on the local workforce is not yet clear, Arizona is deeply embedded in Intel’s long-term plans.
Intel’s recent financial struggles raise questions, but the company remains a critical part of Arizona’s economy and its role in the global semiconductor landscape. Arizona’s importance in the semiconductor world is growing. The state has become a key player in reshoring semiconductor manufacturing — a crucial move to reduce reliance on foreign production. Currently, chips cross borders as many as 70 times during production. By focusing on domestic manufacturing, Arizona companies like Intel can help secure the U.S. chip supply chain and reduce vulnerabilities, especially for sectors like military and government operations. The CHIPS Act and ongoing federal support for domestic semiconductor production provide hope that, despite the layoffs, Arizona will continue to lead the way in America’s chipmaking resurgence.
