Intel CEO Pat Gelsinger and his top executives are gearing up to present a comprehensive plan to the board of directors later this month, aiming to cut costs and revitalize the struggling chipmaker. The proposal, which includes selling off non-core businesses such as the Altera programmable chip unit, comes as Intel faces mounting challenges in the rapidly evolving semiconductor industry.
The plan, expected to be unveiled during a mid-September board meeting, will outline potential asset sales and significant reductions in capital spending. One of the major considerations is pausing or halting the $32 billion factory project in Germany, as Intel seeks to curb expenses amid financial difficulties. This move follows a dire second-quarter earnings report, which led to a 15% staff reduction and the suspension of dividend payments.
Intel has retained Morgan Stanley and Goldman Sachs to advise on possible asset sales, including the exploration of a full sale of Altera, a unit it acquired for $16.7 billion in 2015. While the board’s final decisions are yet to be made, the meeting is seen as crucial for determining Intel’s future strategy and direction as it strives to regain its competitive edge in the AI-driven chip market.
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