Intel recently announced its plan to delay the construction of two mega chip-making factories in Germany and Poland. The chip maker attributed its decision to a lower demand for its chips than earlier anticipated.

Intel has paused plans for new chip factories in Germany and Poland following its disastrous second quarter financial results. CEO Pat Gelsinger told staff yesterday that both projects were being put on hold for two years, while the opening of a new chip packaging plant in Malaysia could also be delayed.

Chip-making giant Intel on Monday said it was delaying its plans to build two mega chip-making factories in Germany and Poland as the company faces lower demand than anticipated. The announcement will come as a major blow to the German and Polish governments that have heavily subsidized the projects and touted them as a boost to their national industry.