Intel is now working with investment banks to recover from the “worst” financial period the company has faced in its history, and there are rumors that Intel may cancel some existing projects.
Intel could implement a more extensive restructuring policy, which would likely include splitting up its foundry division
Team Blue is in deep water right now, and not just financially. Still, the company struggles to “design” its consumer products.
Bloomberg reports that Intel is seeking financial advice from investment banks to try to find a way out of the company’s dire business situation, and one of the rumored proposals for them is to restructure its foundry business, likely to include splitting up its product design and manufacturing businesses. make IFS more competitive. Intel has sought the advice of Goldman Sachs and Morgan Stanley as the company believes it needs to work from scratch to sustain itself for years to come.
Despite will lay off thousands of employeesalong with implementing a robust restructuring policy, Intel has yet to find its way in the right direction, and to top it off, Team Blue CEO Pat Gelsinger is running out of time as the company under his command has underperformed the markets and reported ongoing losses and the numbers keep rising.
However, it is not certain that Intel will make a huge move just yet, and the next step will likely involve cutting costs in the form of canceling development projects, be it foundries for IFS or even new manufacturing plants. The idea of dissolving Intel Foundry is not viable, given the division is of great importance to Intelespecially when it comes to competition in semiconductor markets. But things aren’t looking good for IFS either, as the 18A process at the factory is said to come with several critical issues preventing its adoption.
There are rumors that Intel is now planning to split its business model into chip design and chip manufacturing, as mentioned earlier. This will allow the Blue team to make chips for other companies, expanding the scope of its influence; however, in such desperate times, it will be interesting to see which company Intel trusts, especially since the foundry division has not shown any breakthrough in the past few years.
Intel will not go down so easily, given that the company plays a strategic role in the US and is arguably at the forefront of the “semiconductor revolution” that the US government wants. However, the coming days should tell us about how the company will move forward, and it is highly likely that we will see unexpected changes that will make Team Blue sustainable.