Intel considers splitting off foundry business, scrapping factory plans- Bloomberg
Trending Articles- Gold Price Forecast: XAU/USD slumps to near $4,000 on US-China trade progress
- Gold tumbles as traders book profits ahead of key US inflation data
- Gold declines as traders brace for trade talks, US CPI inflation data
- US CPI headline inflation set to rise 3.1% YoY in September
- Australian Dollar maintains position due to US-China trade optimism
- Fed’s October Rate Cut: Easing Cycle Continues, Gold Likely to Keep Rising
Investing.com-- Intel Corporation (NASDAQ:INTC) is considering options to weather a historic slump, which include potentially splitting off its foundry business and scrapping plans for new factories, Bloomberg reported on Thursday.
The chipmaker is in talks with investment bankers over potential options and has met with Goldman Sachs Group Inc (NYSE:GS) and Morgan Stanley (NYSE:MS) over a path forward, Bloomberg reported, citing people with knowledge of the matter.
Intel had earlier in August suspended its dividend and slashed about 15% of its workforce, as it struggled to catch up with rivals in the foundry space, chiefly Taiwan's TSMC (NYSE:TSM).
Once the world's leading chipmaker, Intel fell on hard times in the 2000's, amid increased competition from rivals such as Advanced Micro Devices Inc (NASDAQ:AMD), and as it struggled to keep pace with demands from the smartphone and mobile computing industry.
Apple Inc's (NASDAQ:AAPL) decision to develop its own silicon and stop using Intel chips was also a major blow to the chipmaker.
Intel's challenges came to a head in recent years, with NVIDIA Corporation's (NASDAQ:NVDA) dominance in artificial intelligence further cutting Intel's sales.
The Bloomberg report showed that Intel was now considering separating its product design and foundry business, while also scrapping plans for expansion as it seeks to streamline its operations.
The company could not be immediately reached for comment.
Read more
* The content presented above, whether from a third party or not, is considered as general advice only. This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.
