Investors ask Intel to sell its chip foundries
Investment fund with large stake in Intel, calls for chip foundries and unsuccessful acquisitions to be sold
It seems the internal situation at Intel has become quite untenable. The company's problems of recent years appear to have finally boiled over. According to Reuters , the investment fund Third Point, which holds a $1.000 billion stake in the company, has lost patience. The investors have written a letter to Omar Ishrak, Chairman of Intel's Board of Directors, urging the company to explore "strategic alternatives."
Said investment fund, in the letter, would be asking for very important immediate actions. Among others, he calls for the company's silicon factories to be sold. It also requests the sale of acquisitions that have not brought benefits to the company. All to cope with Intel's market share losses in the last two years.
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The investment fund's letter is anything but soft. It also highlights the departure of chip designers from the company. They say the company has a "human capital management problem" and that chip architects are "demoralized by the status quo."
Without an immediate change at Intel, we fear that America's access to cutting-edge semiconductor supply will erode, forcing the United States to rely more heavily on a geopolitically unstable East Asia to power everything from PCs to business centers. data and critical infrastructure and more.
Investor statement
To make matters worse, the letter highlights all of the company's problems. It emphasizes Apple's announcement of its ARM SoC, intended to phase out Intel processors. It also points out that Microsoft and Amazon are working on their own ARM chips due to the price of Intel chips. The letter further indicates that many customers have switched to competitor AMD, which offers more powerful solutions at lower prices. It emphasizes that NVIDIA is far ahead in Artificial Intelligence. It even mentions that TSMC and Samsung are ahead of Intel in their manufacturing processes.
The letter calls for the company to hire an "investment advisor to explore alternative strategies." It mentions selling off unsuccessful acquisitions or selling off its chip factories, as AMD did when it split from GlobalFoundries.
[irp]Intel Corporation appreciates the input of all investors in increasing shareholder value. In that spirit, we look forward to engaging Third Point in your ideas toward that goal.
Intel statement
It doesn't hurt to reread several kits before publishing. And incidentally, make a headline and a lead that do not repeat the same would give more packaging to the news in general.