Bloomberg reports that Intel is consulting with financial advisors including Morgan Stanley and Goldman Sachs to strategize a turnaround plan after experiencing significant revenue losses and increased deficits.
Possible strategies being considered include splitting the company into two parts: chip design and manufacturing sections, or potentially having to revise plans for building some factories, which will be brought up for discussion at the board meeting in September.
Intel’s current plan involves accelerating the development of their Intel Foundry Service business to take on outsourced chip production jobs in order to compete with TSMC in the long term. However, this plan has been criticized for being overly ambitious and costly, especially as revenue from Intel’s chip production is declining.
Intel’s competitor, AMD, has previously taken a similar route by spinning off their chip manufacturing business into GlobalFoundries back in 2009.
Source: Bloomberg
TLDR: Intel is seeking guidance from financial advisors to navigate through financial challenges by potentially exploring company restructuring and focusing on outsourced chip production to stay competitive in the market.
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