Intel's German megafab dream is over: CEO Lip-Bu Tan kills the project, beset with setbacks from EU funding to ancient neolithic remains, to save cash

Intel has cancelled plans for a so-called megafab in Germany and a packaging plant in Poland. It also plans to shift assembly and test facilities in Costa Rica to its larger Malaysian and Vietnamese sites. The news comes from a letter to employees written by CEO Lip-Bu Tan, who says the move will help Intel in its goal of becoming a "more financially disciplined company" as it looks to cut costs company-wide.

"Going forward, we will follow a systematic approach to growing our factory footprint...