The abrupt resignation of Pat Gelsinger as Intel’s CEO has ignited fresh conversations about the company’s future, with speculation swirling over potential deals and restructuring.
Gelsinger, who led the chipmaking giant during a challenging turnaround period, had firmly opposed splitting Intel’s operations or pursuing acquisitions. Now, with new leadership on the horizon, options once deemed off the table are being reconsidered.
Intel’s board has explored a variety of possibilities in recent months, including private equity investments and separating its manufacturing and design divisions.
Once a chip giant, Intel’s struggle continues to worsen
Gelsinger’s departure, reportedly under board pressure, could make these discussions more feasible. Financial heavyweights like Morgan Stanley and Goldman Sachs are already advising Intel on its strategic options, which may now find a more receptive audience.
Intel has long been a dominant force in the semiconductor world but has struggled to maintain its edge in a rapidly evolving market. Rivals like NVIDIA and AMD have surged ahead, leaving Intel grappling with sliding sales and a costly manufacturing strategy.
The company’s dual role as both a chip designer and manufacturer has become a financial strain, especially as it attempts to compete with Taiwan Semiconductor Manufacturing Co. (TSMC) in the foundry business, and with NVIDIA and AMD in the AI chips business.
Under Gelsinger, Intel pursued some radical cost-cutting measures, including job cuts, paused plant construction in Europe, and a suspension of its dividend.
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