Intel may layoff thousands to cut costs amid demand slowdown: Report

It further added that Intel declined to comment on the job cuts. Intel in July slashed its annual sales and profit forecasts after missing estimates for second-quarter results.

After years of record capital spending, chipmakers are warning on a weekly basis that demand is sputtering. In the latest sign of trouble, Samsung Electronics Co. and Advanced Micro Devices Inc. reported disappointing results within hours of each other that widely missed projections.

Samsung, the world’s largest memory chipmaker, reported a 32 percent dive in operating income, while PC-processor maker AMD said it would miss its earlier forecast by about $1 billion. Analysts’ reactions ranged from “breathtaking” to “Uff-da!”

Chipmakers are also under pressure from COVID-19 curbs in key PC markets China and the Ukraine conflict that has led to supply-chain snarls and also weighed on demand.

Meanwhile, last month, Intel told CNBC-TV18 exclusively that, while it has no plans to actually manufacture semiconductor chips in India, it will, nevertheless, help build a chip ecosystem in the country.

Steven A Long, Intel's General Manager of Asia Pacific And Japan, said the company has already invested $8 billion in India and currently employs around 14,000 people here, reaffirming India's importance to the company.

"Intel is very committed to India; we have been for over 30 years — have over 14,000 employees here in India. At this point, we do not intend to enter the manufacturing realm, but we see ourselves doing a lot for the ecosystem," Long said.