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it home reported on september 17 that intel ceo pat gelsinger issued a memo to employees, elaborating on intel's preparations for the next stage of transformation.

it home has already reported on some of the content, such as strengthening the independence of the foundry business, strengthening cooperation with amazon aws, and obtaining direct funding of up to us$3 billion (currently approximately rmb 21.283 billion) from the us chips and science act.

in addition, the memorandum also mentioned aspects of reducing costs and increasing efficiency.pat gelsinger said intel needs to optimize its manufacturing processes, strengthen its product portfolio and improve its financial performance.

a key priority for intel’s foundry business is to improve capital efficiency. our manufacturing investments across three continents have laid the foundation for a top foundry business in the ai ​​era. now that we have completed our transition to euv, it is time to move from an accelerated investment phase to a more normal node development cadence and a more flexible and efficient capital plan.

he said intel will maintain its "intelligent capital" approach to maximize financial flexibility while completing its manufacturing construction plans, which will require some adjustments to the scope and pace of recent expansion in manufacturing:

we recently added capacity in europe through our facility in ireland, which will remain our primary european hub for the foreseeable future. based on expected market demand, we will pause projects in poland and germany for approximately two years.

malaysia remains a design and manufacturing hub for our existing business. we plan to complete construction of our new advanced packaging facility in malaysia, but will adjust the timing of the start-up based on market conditions and utilization of existing capacity.

there are no changes to our other manufacturing locations. we remain committed to investing in production in the u.s. and advancing our projects in arizona, oregon, new mexico and ohio. as we grow our foundry business, we will scale global production based on market demand.

in addition, he said intel is taking steps to "strengthen and simplify intel's product portfolio" to seize clearer opportunities for greater focus, speed and efficiency.

our top priority is to maximize the value of our x86 business in the client, edge, and data center markets, including delivering a broader range of custom silicon and other customized offerings to address emerging customer needs, as demonstrated by today’s aws announcement.

he said intel is taking steps to "simplify our portfolio to improve efficiency, accelerate innovation and deliver more highly integrated solutions," including moving its edge and automotive businesses to ccg; while also allowing nex to focus on networking and telecommunications businesses.

pat gelsinger also mentioned that intel is moving integrated photonic solutions to dcai as “we focus on driving a more targeted r&d program that is fully aligned with our top business priorities.”

additionally, intel is integrating its software and incubation businesses into our core business units to foster more integrated roadmaps, unlock efficiencies, and create value.

taken together, these actions are key steps in our journey to create a leaner, simpler, and more efficient intel. they build on the immediate progress we have made on the plan we announced on august 1 to create a more competitive cost structure.

we are more than halfway toward our goal of reducing our workforce by approximately 15,000 employees by the end of the year through our voluntary early retirement and separation program, but we still have difficult decisions to make and will notify other affected employees in mid-october. in addition, we are implementing plans to sell approximately two-thirds of our global real estate holdings by the end of the year.

while we continue to take urgent actions to execute the plans we announced last month, we are also working to carefully manage our cash flow to improve our balance sheet and liquidity as much as possible, including the sale of a portion of our stake in altera, something we have discussed publicly on many occasions and as part of our plan to generate proceeds for intel as altera goes public.

kissinger stressed: (now) all eyes are on us. we need to fight for every inch of land and do it better than ever before, because this is the only way to silence the critics and deliver on our promises.

as i have said before, this is the most important transformation intel has seen in more than 40 years. we have not attempted anything this big since the transition from memory to microprocessors. we succeeded then, so we will succeed again and build an even stronger intel for decades to come.

on behalf of the entire elt and the board, i want to thank you for everything you have done, including your patience, courage, and hard work as we worked to complete our plans and position the company for the future.