A month before Intel CEO Pat Gelsinger’s unexpected retirement, four former Intel board members published an op-ed urging the company to split into two distinct entities: one for microprocessor design and another as a standalone foundry business. They argued this drastic move was essential to halt Intel’s decline, reclaim leadership in chip manufacturing, and ensure the U.S. maintains advanced semiconductor production. Despite Gelsinger’s efforts to establish Intel Foundry as a subsidiary, the op-ed argued the restructuring didn’t go far enough. The board members also suggested tying Intel’s $8 billion in CHIPS Act funding to such a split, emphasizing that government leverage could push Intel toward sustainable recovery.
My Take
Intel faces a crossroads that demands bold action to remain competitive. Splitting its design and manufacturing arms may unlock the agility needed to focus on innovation while leveraging its foundry potential to meet growing global demand.
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Link to article:
https://finance.yahoo.com/news/month-intel-ceo-surprise-exit-204612450.html
Link to letter from Intel’s former board members:
Credit: Yahoo Finance, Fortune