Narayan AmmachchiIntel Corporation is scaling back its manufacturing operations in Costa Rica as part of a broader global restructuring plan. The chipmaker will relocate a portion of its production to larger facilities in Vietnam and Malaysia, a move expected to result in the elimination of thousands of jobs in the Central American nation.
This marks the second major reduction of Intel’s manufacturing footprint in Costa Rica since it first established operations there more than 27 years ago. As of 2024, the chipmaker employed over 3,400 people in the country, according to its official website.
While Intel has not disclosed the exact number of workers affected, industry analysts estimate that around 1,400 jobs may be lost. The downsizing could also disrupt a network of approximately 4,500 local suppliers and contractors who are tied to the company’s manufacturing ecosystem.
“Costa Rica remains a large and important Intel site that’s home to key engineering teams and corporate functions,” CEO Lip-Bu Tan said in a letter to employees, underscoring the company’s continued presence in the region despite the manufacturing shift.
The development follows Intel’s announcement of a global workforce reduction by 15% as it seeks to streamline operations and end the year with around 75,000 employees — down from 99,500 in 2024.
The move comes amid intensifying competition from rivals such as Nvidia Corporation and Advanced Micro Devices Inc., both of which are benefiting from surging demand for artificial intelligence technologies.
Industry sources also report that Intel is slowing down the construction of its much-anticipated semiconductor plant in Ohio, signaling further cost-cutting measures.
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