the mother Intel Will you finally fulfill what investors have been hoping for in recent years? The Bloomberg website reports that the chip giant and the largest employer in Israel is considering splitting its business into two separate companies: chip development and chip production, similar to the move made by AMD in the past, which split the production division – now Global Foundries – out of it.
For a long time, the company’s investors have been supporting the process and exerting pressure on the company on the issue – this is not only due to the liquidity crisis the company is going through, but also due to the need to build a total separation, or “Chinese wall” between the two divisions, which operate, as it were, under opposing interests: activity Manufacturing wants to attract as many companies as possible in the chip industry – such as Nvidia or AMD – while the chip development activity competes with them. The CEO of Intel, Pat Gelsinger, has vigorously opposed such a move in the past, apparently due to the desire to build the company’s new manufacturing arm without financial dependence on outside investors – while relying on Intel’s bread and butter – the revenue from the sale of chips for personal computers.
According to the report, Intel hired the investment bank Morgan Stanley to advise it to carry out cuts and organizational changes, in order to deal with the liquidity crisis it has encountered, and to plan the cutback process it announced, in which approximately 17,000 employees will be laid off and take early retirement. At Morgan Stanley, courses of action are being formulated that will be presented to Intel’s management during a board meeting to be held next month. At the same time, it is estimated that Gelsinger would prefer to make less dramatic moves than a split in the first stage, such as delaying part of its expansion process, something that is already reflected today, in the delay in the construction of plants such as those in Israel and Germany.
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