Facing a financial crisis, Intel Corporation is trying to regain lost ground in both the processor and server markets. Accordingly, Intel CEO Pat Gelsinger will present several proposals to the board of directors next month. These include selling some companies and halting factory construction.
Intel CEO suggested: Sell Altera and halt factory construction in Germany
Intel has been experiencing problems in chip production and supply for some time. Accordingly, the tech giant’s market capitalization has fallen below $100 billion. According to sources, Intel is working with firms such as Morgan Stanley to evaluate options ahead of the September board meeting.
One of the biggest suggestions of investors is to sell some subsidiaries. In this context, at the board meeting, it will be proposed to sell Altera, which produces programmable logic circuits. The sale will provide cash for Intel to invest in different areas.
Another suggestion is to stop the construction of a $30 billion factory in Germany. However, Intel has to build this factory because it receives a large subsidy in Germany. European Union countries also want chip production to move to Europe.
Intel had previously announced that it would cut 17 percent of its 2025 spending. On the other hand, it was stated that the factories should work due to the state support given to increase the factory capacity in the USA.
The board meeting came at a time when investors demanded changes to revitalize Intel. One member had even recently resigned due to bureaucratic obstacles that hindered innovation.
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