-advertisement-

Intel is exploring significant strategic options, including the potential sale of its Altera unit and halting a $32 billion investment project in Germany. These measures are part of a broader plan to navigate the company through a challenging period, as CEO Pat Gelsinger and senior executives prepare to present a revitalization strategy to the board later this month.

The plan focuses on cutting costs by divesting non-essential businesses and reducing capital expenditures. A key component under consideration is the sale of Altera, the programmable chip unit Intel acquired in 2015 for $16.7 billion. Infrastructure chipmaker Marvell is one potential buyer for such a transaction, according to one of the sources.

Additionally, Intel is considering pausing or even halting its ambitious factory project in Magdeburg, Germany, which has already been delayed due to subsidy approval issues. This move would align with Intel's recent announcement to reduce capital spending by 17% to $21.5 billion in 2025.

Intel has retained Morgan Stanley and Goldman Sachs to advise on which business units to sell and which to retain. The board's mid-September meeting is expected to be pivotal, with crucial decisions anticipated about the company’s future direction. Despite recent struggles, including disappointing financial results and a steep decline in market capitalization, Intel is determined to realign its operations to regain its footing in the highly competitive semiconductor industry.

The proposed divestments do not currently include splitting up Intel or selling its foundry business, according to sources. However, the situation remains fluid, and the details of the plan could change before the board meeting.

Intel's recent challenges have been significant, with the company reporting a 15% workforce reduction and suspending dividend payments in an effort to save $10 billion. The resignation of board member and semiconductor industry veteran Lip-Bu Tan has further highlighted the company's difficulties. CEO Pat Gelsinger has acknowledged the tough road ahead but has expressed confidence in the company's turnaround strategy, which is expected to take clearer shape after the upcoming board meeting.

Editor：Lulu

▼▼▼

Google eyes Vietnam for first U.S. hyperscale data center investment

Chinese chip start-up Xiangdixian collapses amid cash crunch and legal woes

India Unveils $15 Billion Plan to Boost Semiconductor Manufacturing

Huawei's net profit in 1H24 hit record high amid U.S. sanctions, surpassing CNY 50 Billion for the first time

SK hynix develops industry's first 16Gb DDR5 on advanced 1c node

ASML's China Chip Business Faces New Curbs From Netherlands