The talks, backed by Morgan Stanley and Goldman Sachs, could lead to a restructuring or even a sale of the foundry unit, which makes chips for external customers. It came after a dismal earnings report that sent Intel shares to their lowest level since 2013, though they rose 9.5% to $22.04 on Friday, the biggest one-day gain since October 2022.
The potential spin-off or sale represents a sharp departure from CEO Pat Gelsinger’s original strategy to revitalize Intel’s position by expanding its foundry business to compete with leaders like TSMC. But it’s worth noting that Intel shares are down 60% this year and its foundry division is struggling with operating losses.
Intel’s next steps are expected to be detailed at its board meeting in September.
Source: Ferra
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