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Intel Eyes Aggressive 2026 CapEx Cuts After 'Excessive' Spending: 'We Will Build What Customers Need, When They Need It,' Says CEO Lip-Bu Tan

Intel Corp. (NASDAQ:INTC) is signaling a dramatic shift in its capital expenditure strategy, with plans for aggressive cuts in 2026, as CEO Lip-Bu Tan pledges to prioritize demand-driven investments over what he describes as “unwise and excessive” spending of the past.

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What Happened: “Unfortunately, the capacity investment we made over the last several years were well ahead of demand and were unwise and excessive,” stated Intel CEO, acknowledging past missteps.

This new, financially disciplined approach was a central theme during the company’s second quarter 2025 earnings call. CNBC’s Mad Money host, Jim Cramer, acknowledged this in an X post.

Intel's Lip Bu Tan says Pat Gelsinger's projects were "unwise and excessive."

— Jim Cramer (@jimcramer) July 24, 2025

Lip-Bu Tan emphasized a new philosophy for Intel’s foundry business: “I do not subscribe to the belief that if you build it, they will come. Under my leadership, we will build what customers need, when they need it and earn their trust through consistent execution.”

Intel’s CFO, David Zinsner, confirmed the company’s commitment to reducing capital outlays. “We have already lowered our CapEx guidance from the beginning of the year by ...