While none of this has been confirmed Intel’s management team is expected to present its plans for the company at a board meeting later this month.
Sources have suggested that it could also consider splitting off its contract manufacturing operation; Intel has already broken off its foundry business from its design business, and has been reporting its financial results separately since the start of the financial year.
Intel is struggling to compete with Nvidia, which is currently dominating the market for artificial intelligence, and while Nvidia is valued at over $3trn Intel’s valuation has tumbled to less than $100bn.
Intel may have to consider cutting back on investment and there are suggestions that it could pause or even halt its $32 billion factory in Germany. Intel has already said that it expects to cut capital spending to $21.5 billion in 2025, a fall of 17% from this year.
The company reported a disastrous second quarter in August and announced a 15% staff cut, with the aim of saving $10 billion. The chip industry veteran Lip-Bu Tan has also resigned from the board after months of debate over the company’s future.
Whatever Intel decides, and it needs to make some big decisions, it's going to be an interesting board meeting later this month.
