Intel’s transformation process to enhance its competitiveness has taken on a new dimension with a striking proposal from former senior executives. The article, written by Charlene Barshefsky, Reed Hundt, and James Plummer, formerly prominent figures in the company, argues that Intel should transition from publicly traded status to a private company.

Will Intel be delisted?

The basis of the proposal is the belief that Intel’s current structure is hindering its long-term technology development goals. It points out that Intel, forced to navigate short-term financial pressures as a public company, lacks sufficient flexibility in its product development processes.

The proposal suggests that becoming privately held would free Intel from these pressures and enable it to pursue a more aggressive growth strategy, particularly in priority areas such as artificial intelligence.

The article also suggests that Intel should separate its foundry division. This move aims to provide a strong option for chip designers seeking alternatives to TSMC. It also emphasizes that, thanks to its privately held structure, it could attract talented AI engineers in the sector by offering them higher salaries.

However, implementing this proposal poses significant operational and financial challenges. Fully privatizing a publicly traded company presents numerous obstacles, including share buybacks, investor concerns, and costly structural changes.

Despite this, there is growing support for the view that Intel, which recently sold a 10% stake to the US government and a 4% stake to Nvidia, needs to make radical changes to its course.

The executives’ proposal, when considered alongside Intel’s strategic partnership with Nvidia and US pressure to increase domestic chip production, poses a serious question for the company’s future.