Amidst mounting challenges, Intel has unveiled cost-cutting measures within its contract manufacturing segment, prompting an 8% nosedive in its share price. Despite the latest financial report boasting revenues exceeding forecasts at $12.9 billion, the market continues to harbor apprehensions about the future trajectory of Intel's chip manufacturing endeavors. CEO Pat Gelsinger underscored that securing customer commitments for new processes is crucial, hinting that the company might contemplate halting its contract manufacturing operations. Furthermore, Intel has axed several factory projects in Europe and the US and trimmed its workforce by 15% in a bid to rein in costs. The financial report disclosed that Intel's net loss widened to $2.9 billion in the second quarter, positioning it as a laggard behind NVIDIA in the competitive AI market. The question lingers: will Intel's strategic pivots in contract manufacturing suffice to arrest its decline?