Intel’s new chief executive is in the hot seat after the chip giant’s $22-billion stock market surge has raised new doubts about the company’s long-term plan. With Intel attempting to regain leadership of the semiconductor business, analysts are wondering if a breakup of the company could unleash more shareholder value.
While Intel has achieved success in manufacturing and technology leadership under its existing strategy, some investors contend that dividing the company into distinct units—such as foundry services and chip design—would result in a more focused effort and better profitability.
The CEO’s soon-to-be-scheduled investor talks are set to be a critical juncture, as the stakeholders will look for straight-up answers regarding if Intel is determined to remain as one entity or seriously explore selling off some of its business divisions.
Intel so far remains close-mouthed about it, but insiders in the industry feel the internal debate within the company is intensifying regarding restructuring. Intel is under increased pressure from challengers such as TSMC and AMD in the chip world, making radical decisions imperative.
