Intel slumps as potential foundry exit deepens investor gloom

Intel shares sank 8% on Friday after the company warned of exiting chip manufacturing if it fails to secure a major customer, a potentially drastic move by the new CEO to cut spending and revive the struggling American icon.

Lip-Bu Tan said on Thursday he would further shrink Intel’s workforce, halt work on two plants in Europe and slow another in Ohio, binning his ousted predecessor’s strategy that relied on building costly facilities to restore its manufacturing edge.